ICICI Direct Short covering was seen in the last session due to which the rupee weakened by 25 paise.
ICICI Direct’s currency report on USDINR
Spot Currency
After appreciating for a long time, the rupee tumbled nearly 25 paise and closed at 74.95 levels despite the Dollar index remaining under pressure. We continue to feel the US$INR pair could remain in a range for a couple of sessions • The Dollar index continued to remain under pressure below 97 levels as questions on the effect of pandemic on the US economy rises. JOLTs Job Openings, IBD/TIPP index and API report could be the trigger for the index.
Currency futures on NSE
Short covering was seen in the last session due to which the rupee weakened by 25 paise. However, we feel it could consolidate in a range in coming days • The dollar-rupee contract on the NSE was at 75.06 in the last session. The open interest fell almost 4.2% in the last session.
Intra-day strategy
| US$INR Jul futures contract (NSE) | View: Bullish on US$INR |
| Buy US$ in the range of 74.90-74.95 | Market Lot: US$1000 |
| Target: 75.05/ 75.15 | Stop Loss: 74.80 |
| Support: 74.70/74.80 | Resistance: 75.05/75.15 |
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First Published on Jul 8, 2020 10:30 am
