Sell USDINR; target of : 82.15 : ICICI Direct

ICICI Direct's currency report on USDINR

The US dollar slipped yesterday amid a rise in risk appetite in global markets. Further, investors were worried that higher interest rates could lead to a recession. Meanwhile, PPI and consumer sentiment data due Friday remained in the limelight • Rupee future maturing on December 28 appreciated by 0.04% yesterday amid a weak dollar, soft crude oil prices and rise in risk appetite in global markets • The rupee is likely to appreciate today on the back of weakness in the dollar and optimistic global market sentiments. Further, softening of crude oil prices may be supportive for the domestic currency as it will reduce the Import bills. In the meantime, investors will remain cautious ahead of the key economic data from US as it could change the expectations around the terminal Fed fund rates which currently lingers around 5%. Additionally, investors fear that rising interest rates will hamper global economic growth. US$INR (December) may trade in a range of 82.15-82.60.

Intra-day strategy

US$INR Dec futures contract (NSE)

Sell USDINR in the range of 82.44-82.45

Target: 82.15

Stoploss: 82.60Support: 82.15/82.05

Resistance: 82.60/82.70

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09122022 - currency