ICICI Direct expect the US dollar slipped 0.16% on Wednesday amid rise in risk appetite in the global markets and decline in US treasury yields. However, expectation of higher CPI inflation data from US prevented further decline in the dollar.
Broker Research
February 10, 2022 / 10:05 AM IST
Representative image
ICICI Direct’s currency report on USDINR
The US dollar slipped 0.16% on Wednesday amid rise in risk appetite in the global markets and decline in US treasury yields. However, expectation of higher CPI inflation data from US prevented further decline in the dollar. Rupee February futures depreciated by 0.09% on the back of retreat in India 10 year treasury yields. However, a sharp downside was prevented on soft dollar. The rupee is expected to depreciate today due to rise in crude oil prices and on expectation of improved economic data from the US. However, optimistic sentiments in the domestic market may continue to support the rupee. Meanwhile, investors will keep an eye on Interest rate decision from the RBI. US$ INR (February) is expected to rise further towards 75.35 for the day.
The Euro traded flat on Wednesday on the back of mixed economic data from the euro area. Meanwhile, positive sentiments in global markets supported the Euro on the lower side. The Euro is expected to trade with a negative bias, mainly due to a stronger dollar. However, a rise in risk appetite in European markets and hawkish shift from European Central Bank last week may prevent a further decline in the single currency. The EURINR (February) is facing strong resistance at 85.90 levels. As long as they sustain below this level, EURINR is likely to correct further towards 85.30 levels for the day. The pound depreciated by 0.10% amid a decline in UK 10 year treasury yields. However, a sharp downside was cushioned on optimistic sentiments in the UK markets and soft dollar.
Intra-day strategy
| US$ INRÂ February futures contract (NSE) | |
| Buy USDINR in the range of 74.94-74.95 | |
| Target: 75.15 | Stop Loss: 74.82 |
| Support: 74.82/74.70 | Resistance: 75.20/75.35 |
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