Sell USDINR; target of : 79.50: ICICI Direct


ICICI Direct, US dollar slipped yesterday amid decline in US treasury yields.

July 29, 2022 / 09:11 AM IST

(Image: Photographer: Brent Lewin/Bloomberg)

(Image: Photographer: Brent Lewin/Bloomberg)

ICICI Direct’s currency report on USDINR

US dollar slipped yesterday amid decline in US treasury yields. Yields fell after data showed US economy contracted again in second quarter fuelling speculation that Federal Reserve will not raise rate aggressively as expected. Even US Fed raised interest rates by 75bps on Wednesday, as was widely anticipated and comments from Powell spurred hopes for slower hiking path • Rupee future maturing on August 26th appreciated by 0.30% yesterday amid weakness in dollar, rise in risk appetite in the domestic markets and FII inflows • Rupee is expected to appreciated today amid optimistic global market sentiments and weakness in dollar. Market sentiments improved after US Fed Chair Powell hinted that the pace of rate rises would eventually slow. However, sharp gains may be prevented as traders will remain vigilant ahead of major economic data from Euro Zone and US to gauge economic health. US$ INR (Aug) is expected to trade in a range of 79.50-79.95.

Intra-day strategy 

US$ INR Aug futures contract (NSE
Sell USDINR in the range of 79.79-79.80
Target: 79.50 Stoploss: 79.95
Support: 79.50/79.40 Resistance: 79.95/80.05


29072022 – currency

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