ICICI Direct, The US dollar declined on Friday as global risk appetite rebounded.
October 18, 2021 / 08:26 AM IST
ICICI Direct’s currency report on USDINR
The US dollar declined on Friday as global risk appetite rebounded. However, sharp downside was cushioned as yield on short term treasury climbed. Additionally, strong retail sales data from the US supported the dollar • Rupee future maturing on October 27 appreciated 0.19% on Thursday on weak dollar and FII inflows. However, sharp gains were prevented on rising crude oil prices and as investors stayed cautious ahead of economic data from US • The rupee is expected to appreciate on a weak dollar and rebound in risk appetite in global markets. Further, FII inflows will support rupee. However, sharp upside may be capped as investor worries that rising energy prices may stoke inflation fears. In turn, this could push central banks across major countries to withdraw stimulus at a pace faster than expected.
Intra-day strategy
| USDINR October futures contract (NSE) | |
| Sell USDINR in the range of 75.35-75.37 | |
| Target: 75.05 | Stop Loss: 75.50 |
| Support: 75.15/75.05 | Resistance: 75.45/75.50 |
Disclaimer:
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