ICICI Direct, The US dollar rose 0.41% on Friday amid a surge in US treasury yields and weaker risk appetite in financial markets.
January 17, 2022 / 09:12 AM IST
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ICICI Direct’s currency report on USDINR
The US dollar rose 0.41% on Friday amid a surge in US treasury yields and weaker risk appetite in financial markets. Market sentiments were hit on worries about how imminent interest rate hike in US would impact economy. Additionally, hawkish statements from fed officials supported dollar • Rupee future maturing on January 27 depreciated by 0.25% majorly on the back of surge in crude oil prices, muted domestic market and FII outflows • The rupee is expected to depreciate on strong dollar and pessimistic global market sentiments. Further, the Indian currency may slip on elevated crude oil prices and persistent FII outflows. Investors may fear that surge in crude oil prices will lead to rise in inflation and even impact current account deficit. Additionally, market will keep a eye on talks between US and Russia over rising tension in Ukraine.
Intra-day strategy
| US$ INR January futures contract (NSE) | |
| Buy USDINR in the range of 74.23-74.25 | |
| Target: 74.50 | Stop Loss: 74.10 |
| Support: 74.10/74.00 | Resistance: 74.50/74.60 |
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