ICICI Direct, The US dollar declined by 1.17% on Friday after data showed easing wage growth and contraction in the service sector.
January 09, 2023 / 09:43 AM IST
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ICICI Direct’s currency report on USDINR
The US dollar declined by 1.17% on Friday after data showed easing wage growth and contraction in the service sector. Disappointing economic data fuelled expectations of smaller rate hikes. Wages grew 0.3% in December, less than 0.4% in November 2022. ISM Services PMI dropped to 49.6 in December 2022 from 56.5 in November 2022, first time since May 2020. Apart from this, two US Fed officials signalled a smaller rate hike at the next policy meeting • Rupee future maturing on January 27 depreciated by 0.26% on Friday tracking a strong dollar. Further, the rupee was hurt on risk aversion in domestic market and persistent FII outflows • The rupee is likely to appreciate today amid weakness in the dollar and rise in risk appetite in global markets. Market sentiments improved as fresh data showed slowdown in wage growth, a buoyant sign for Fed battle against inflation that could ease pressure for further rate hike. Further, softening of crude oil prices will support rupee. US$ INR (January) is expected to trade in a range of 82.30-82.75.
Intra-day strategy
| USDINR Jan futures contract (NSE) | |
| Sell USDINR in the range of 82.58-82.60 | |
| Target: 82.30 | Stoploss: 82.75 |
| Support: 82.30/82.15 | Resistance: 82.75/82.85 |
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09012023 – currency
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