ICICI Direct, The US dollar bounced back and rose 0.50% on Friday amid risk aversion in global markets and hawkish statements from Fed officials.
November 22, 2021 / 08:18 AM IST
ICICI Direct’s currency report on USDINR
The US dollar bounced back and rose 0.50% on Friday amid risk aversion in global markets and hawkish statements from Fed officials. Federal Reserve Governor Christopher Waller and Fed Vice Chair Clarida signalled the possibility of an early rate hike • Rupee future maturing on November 26 depreciated marginally by 0.02% on Thursday amid FII outflows and pessimistic domestic markets • The rupee is expected to depreciate on a strong dollar and risk aversion in global markets. Market sentiments are hurt on concerns that rising Covid-19 cases in Europe and fresh restrictions may hurt the global economic recovery. Additionally, investors are worried that elevated inflation may push major central banks across the globe to hike rates sooner than expected. In turn, this 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 USDINR in the range of 74.28-74.30 | |
| Target: 74.60 | Stop Loss: 74.15 |
| Support: 74.15/74.10 | Resistance: 74.50/74.60 |
Disclaimer:
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