According to the ICICI Direct’s currency report on USDINR, currently the rupee is continuing to remain in a range beside dollar strengthening.
Recently the spot currency has witnessed rise in the bond yields as well.
Right now, the continued FII buying in equities can result in the outperformance of this pair as well.
Moreover, the dollar has also seen a little pressure towards its higher levels. It has moved to 91 levels so far.
Further, it is important to note that the dollar’s downward movement comes regardless of the US bond yields.
However, the US bond yields increases to any levels, this is not responsible for the dollar’s depreciation.
As per the data, the current scenario is showing 10-year benchmark slowly reaching towards 1.20 percent level.
On the NSE, the USDINR pair has once again fell down beyond the 73 levels. It can also further decline if it somehow sustains below this mark.
Moreover, the main concern will be the continuous dollar strengthening as of now.
The dollar-rupee February contract settled at Rs 73.10 in the previous session on NSE. However, the February open interest rates did increase by almost 8 percent.
Some sort of selling can be done in the range of 73.18 – 73.22 for a target of 73.10/73.00. The current resistance is 73.30/73.50 and the pair has support around 72.95/72.85 levels.
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