Buy USDINR; target of 68.25 - 68.30: ICICI Direct

ICICI Direct's currency report on USDINR

Spot Currency� �

The rupee ended the session with sharp losses of 0 . 58 % , testing lowest levels in almost four weeks . However it is expected to open on higher today, still seeing limited gains ahead of upcoming crucial Opec meeting �� The US $ ended higher amidst risk concerns of aggravating trade friction between US and other countries . JPY gained on the back of safe haven currency demand while Euro and Pound declined sharply owing to US $ strength . Global equity markets slumped weighed by fears of full scale global trade wars.

Benchmark yield �

Sovereign bonds extended further gains amidst steady crude oil prices as well slide in global bond yields . Global trade wars could see yields declining as it could weigh on growth prospects �� US 10 - year yields declined in yesterday session as investors chased safe haven assets including US treasury . Yields to remain volatile in backdrop of hawkish Fed while trade frictions could see flight to safety provided by sovereign bonds.

Currency futures on NSE Near - month dollar - rupee June contract on the NSE was at 68. 40 in the previous session . June contract open interest increased 7 . 27 % in the previous day �� We expect the US$INR to find supports at lower levels . Utilise downsides in the pair to initiate long positions.

Intra-day strategy

US$INR June futures contract (NSE)	View: Bullish on US$INR
Buy US$INR in the range of 67.88 -67.96	Market Lot: US$1000
Target: 68.25 / 68.30	Stop Loss: 67.77
Support	Resistance
S1/ S2: 68.04 / 67.90	1/R2:68.30 /68.45

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