ICICI Direct, The US dollar surged amid risk aversion in global markets and rise in US treasury yields.
April 06, 2022 / 08:47 AM IST
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ICICI Direct’s currency report on USDINR
The US dollar surged amid risk aversion in global markets and rise in US treasury yields. Yields moved up on hawkish statements from Fed officials. Fed governor Lael Brainard said she expects methodical interest rate hike and rapid reductions to Fed’s $ 9 trillion balance sheet. Further, Kanas City Fed president Esther George signalled a 50 bps rate hike next month and reduction in Fed balance sheet • Rupee future maturing on April 27 appreciated by 0.32% despite risk aversion in the global markets and strong dollar • The rupee is expected to depreciate today amid strong dollar and pessimistic global market sentiments. Further, investors fear that new sanctions on Russia will add fuel to rising inflation and hurt economic growth. Additionally, the market is carefully watching the Fed to see if it can tighten policy just enough to tame inflation and not damage the economy. Furthermore, market participants will remain vigilant ahead of FOMC meeting minutes.
Intra-day strategy
| US$ INR April futures contract (NSE) | |
| Buy USDINR in the range of 75.58-75.60 | |
| Target: 75.90 | Stop Loss: 75.45 |
| Support: 75.45/75.35 | Resistance: 75.80/75.90 |
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