ICICI Direct, The US dollar advanced by 0.59% yesterday amid a surge in US treasury yields and risk aversion in global markets.
January 19, 2022 / 08:48 AM IST
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ICICI Direct’s currency report on USDINR
The US dollar advanced by 0.59% yesterday amid a surge in US treasury yields and risk aversion in global markets. Yields remained elevated on anticipation that the US Fed will increase interest rates more aggressively to tame stubbornly high inflation • Rupee future maturing on January 27 depreciated by 0.46% amid strong dollar and risk aversion in the domestic markets. Further, the rupee slipped on persistent FII outflows and seven year high crude oil prices • The rupee is expected to continue its depreciation on pessimistic global market sentiments and strong dollar. The dollar is regaining its strength as market participants prepared themselves for more aggressive monetary tightening from US Fed to tackle unabated inflation. Additionally, the rupee may slip on elevated crude oil prices and consistent FII outflows.
Intra-day strategy
| US$ INR January futures contract (NSE) | |
| Buy USDINR in the range of 74.66-74.68 | |
| Target: 74.95 | Stop Loss: 74.52 |
| Support: 74.52/74.40 | Resistance: 74.85/74.95 |
Disclaimer:
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