ICICI Direct expects USD/INR to find supports at lower levels. Utilize downsides in pair to initiate long positions.
The Rupee ended sharply lower at 72. 51 as concerns grew on the Trump administration’s plan to impose tariffs on $ 200 billion worth of Chinese imports while disappointment over the government’s measures weighed • The US$ ended lower as concerns emerged on the Trump administration’s aggressive tariffs on Chinese imports. The US has imposed 10 % tariffs on $ 200 billion worth of Chinese imports effective September 24, which could rise to 25 % by year end. As a result, DM currencies rose while EM currencies continued to bear the Dollar brunt.
The rupee ended on a higher note on Friday. However, it pared strong opening gains as a sell – off in domestic equities weighed. It is expected to open lower today amid higher oil prices and overnight gains in US$ • The US$ recovered against major currencies due to sharp profit booking in British Pound and a decline in the Euro. No Brexit deal rhetoric triggered profit booking by GBP bulls. Currencies are expected to remain on the edge ahead of US FOMC monetary policy meeting this week. The Fed is expected to raise interest rates by 25 bps. However, investors would remain glued to Fed’s assessment of further inflation prospects and economic growth.
Currency futures on NSE
The dollar – rupee September contract on the NSE was at 72. 18 in the previous session. September contract open interest declined 1. 23 % in the previous session • We expect the US$/INR to find supports at lower levels. Utilize downsides in pair to initiate long positions.
You can also Join The Equicom for more Trading Trials and Recommendations!