Sell USDINR; target of 64.10: Bonaz Capital
Bonaz Capital expects USD to meet supply pressure at higher levels . Utilise upsides in the pair to go short on the USDINR pair.
Government bonds rose for a third day, after the Monetary Policy Committee’s downward revision of inflation projection prompted investor hopes of lower interest rates The benchmark 6.97 % 202 6 bond yield declined to 6. 5 3 % from 6. 57 % in the previous session Yield on the US 10 – y ear rose to 2. 1 9 % from 2. 1 7 % in the previous session
The rupee rose for a second day, as a sharp appreciation towards session – end due to soft US$ of crucial economic and political events in the US and Europe The US$ posted gains against major currencies due to multiple factors. ECB maintained key interest rates but raised concerns on inflation. The British pound fell sharply as early polls data suggest a hung Parliament or the Conservative party failing to garner a majority vote. Japanese Yen lost against the US$ as absence of any sensational information from FBI former director testimony supported the US$.
US$/INR derivatives strategy
In the currency futures market, the most traded dollar – rupee June contract on the NSE ended at 6 4. 36.The June contract open interest declined 0.58 % from the previous day July contract open interest increased 2.6 0 % in the last session We expect the US $ to meet supply pressure at higher levels . Utilise up sides in the pair to go short on the US$INR pair.