ICICI Direct, The US dollar index rebounded from its seven month lows and ended the day with minor gains on hawkish comments from two Fed members.
January 19, 2023 / 09:13 AM IST
Budget 2023
ICICI Direct’s currency report on USDINR
The US dollar index rebounded from its seven month lows and ended the day with minor gains on hawkish comments from two Fed members. Earlier, the dollar index had slid towards the 101.50 mark amid weak US retail sales data and as supplier level inflation cooled significantly. Weak economic data had backed expectations that the Fed will slow the pace of rate hike • Rupee future maturing on January 27 appreciated by 0.60% to settle at 81.34 on Wednesday amid optimistic domestic market sentiments and weakness in the dollar • The rupee is expected to appreciate as long as the pair stays under the 82 mark. Further, anticipation of a weaker set of housing and manufacturing data from the US could restrict the recovery in the dollar. Series of weak economic data from US has fuelled expectations that Fed will reduce the magnitude of rate hike and may even pause it, going forward. For US$ INR 81.20 is key support. A move below would weaken it towards 81.0, followed by 80.80.
Intra-day strategy
| USDINR Jan futures contract (NSE) | |
| Sell USDINR in the range of 81.73-81.75 | |
| Target: 81.20 | Stoploss: 81.95 |
| Support: 81.20/81.00 | Resistance: 81.78/82.00 |
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19012023 – currency
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