ICICI Direct, The US dollar rallied to a nearly two-year high amid decline in US stocks and rise in US treasury yields. Yields moved up on hawkish FOMC meeting minutes.
April 07, 2022 / 08:41 AM IST
ICICI Direct’s currency report on GBPINR
The US dollar rallied to a nearly two-year high amid decline in US stocks and rise in US treasury yields. Yields moved up on hawkish FOMC meeting minutes. Minutes showed that officials could raise interest rates by 50 bps at their meeting early next month and begin reducing its asset holdings much faster than they did in last decade. They agreed to reduce balance sheet by $ 95 billion per month • Rupee future maturing on April 27 depreciated by 0.68% amid strong dollar and risk aversion in the global markets. Further, investors remained vigilant ahead of FOMC meeting minutes • The rupee is expected to depreciate further today amid risk aversion in global markets and strong dollar. Market sentiments were hurt as ongoing war between Russia and Ukraine and sanctions against Russia threaten to increase commodity prices, adding to inflationary pressures and prompting central banks to aggressively tighten their monetary policy. US FOMC meeting minutes showed policymakers were in favour of speeding up the pace of monetary tightening.
Intra-day strategy
| US$ INR April futures contract (NSE) | |
| Buy USDINR in the range of 75.98-76.00 | |
| Target: 76.30 | Stop Loss: 75.85 |
| Support: 75.85/75.75 | Resistance: 76.20/76.30 |
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