ICICI Direct, The US dollar advanced 0.15% yesterday amid a surge in US treasury yields and hawkish statements from US Fed officials.
January 07, 2022 / 09:17 AM IST
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ICICI Direct’s currency report on USDINR
The US dollar advanced 0.15% yesterday amid a surge in US treasury yields and hawkish statements from US Fed officials. Officials feel that the Fed should hike rates sooner to fight stubbornly high inflation. Louis Fed President James Bullard said the Fed could raise interest rates as soon as March and is now in a good position to take even more aggressive steps against inflation • Rupee future maturing on January 27 depreciated by 0.08% on a strong dollar and surge in crude oil prices. Further, the rupee slipped on weak domestic markets and FII outflows • The rupee is expected to depreciate on strong dollar and surge in crude oil prices. Further, investors fear the Fed may respond more aggressively to tame stubbornly high inflation than previously anticipated, which may prompt foreign investors to pump out liquidity from emerging markets. Additionally, market participants will remain vigilant ahead of jobs data from the US.
Intra-day strategy
| USDINR January futures contract (NSE) | |
| Buy USDINR in the range of 74.53-74.55 | |
| Target: 74.85 | Stop Loss: 74.40 |
| Support: 74.40/74.30 | Resistance: 74.75/74.85 |
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