ICICI Direct, The US dollar continued its rally and rose to a 16-month high, increasing by 0.42% yesterday amid a surge in US treasury yields and enhanced economic data from US.
November 17, 2021 / 08:44 AM IST
ICICI Direct’s currency report on USDINR
The US dollar continued its rally and rose to a 16-month high, increasing by 0.42% yesterday amid a surge in US treasury yields and enhanced economic data from US. US retail sales rose 1.7% in October 2021 vs. 0.8% in September 2021 • Rupee future maturing on November 26 appreciated by 0.15% yesterday as some foreign banks sold dollar. However, sharp gains were prevented on a firm dollar and risk aversion in domestic markets • The rupee is expected to depreciate today mainly on the back of a strong dollar and risk aversion in Asian markets. Further, investors will remain cautious ahead of housing data from the US. Furthermore, market participants fear that elevated inflation may push central banks to tighten their monetary policy, which, in turn, may prompt foreign investors to pump out liquidity from emerging markets. However, a sharp fall may be prevented on softening of crude oil prices.
Intra-day strategy
| US$ INR November futures contract (NSE) | |
| Buy US$ INR in the range of 74.43-74.4 | |
| Target: 74.75 | Stop Loss: 74.30 |
| Support: 74.35/74.30 | Resistance: 74.65/74.75 |
Disclaimer:
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