Sell USDINR; target of : 75.30 : ICICI Direct

ICICI Direct’s currency report on USDINR

The US dollar declined 0.44% yesterday amid a rise in US stocks. Market sentiments improved as strong economic data from the US ease concern over a slowdown in the economy due to rising Covid-19 cases. US consumer confidence improved in early December and home sales rose in November • Rupee future maturing on December 29 appreciated by 0.05% on weak dollar and rise in risk appetite in the domestic markets. However, sharp gains were prevented on persistent FII outflows • The rupee is expected to appreciate on weakness in dollar and rise in risk appetite in the global markets. Market sentiments improved as enhanced economic data from US eased the worries over slow down in world largest economy due to surging Covid-19 cases. Also, data from Scotland and South Africa suggest people who contract new variant are at lower risk of hospitalisation than those infected with earlier strains. However, sharp gains may be capped on rise in crude oil prices and consistent FII outflows.

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