ICICI Direct, US dollar declined 0.08% yesterday amid a surge in stock markets.
August 26, 2021 / 09:13 AM IST
ICICI Direct’s currency report on USDINR
US dollar declined 0.08% yesterday amid a surge in stock markets. Additionally, market participants remained cautious ahead of US Federal Reserve Chairman Powell speech at Jackson Hole Symposium to gain fresh insights on monetary tightening. Furthermore, concern over uptick in Covid-19 cases in US added downside pressure. However, rise in US treasury yields and better than expected economic data from US prevented further fall in dollar • Rupee future maturing on August 27 depreciated by 0.06% in yesterday’s trading session on surge in crude oil prices and muted domestic markets • Rupee is likely to appreciate on weakness in dollar and rise in risk appetite in the global markets. However, sharp gains may be prevented on surge in crude oil prices and as market participants are worried that spread of highly infectious delta variant may derail global economic recovery. Additionally, market will remain vigilant ahead of Jackson Hole Symposium.
Intra-day strategy
| US$ INR August futures contract (NSE) | View: Bearish on US$ INR |
| Sell USDINR in the range of 74.25-74.28 | Market Lot: US$ 1000 |
| Target: 73.95 | Stop Loss: 74.40 |
| Support: 74.0/73.95 | Resistance: 74.40/74.48 |
Disclaimer:
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