TRADE NIVESH expects US$INR to meet supply pressure at higher levels. Utilise the upsides in the pair to initiate short positions.
Spot Currency
The rupee ended almost flat vs. the US$. It is expected to open stronger today tracking gains in Asian currencies, after the Federal Reserve signalled it was ready to cut interest rates as early as next month • The 10-year treasury yield dropped below 2% to its lowest since November 2016 and two-year rates continued to fall • The yen rose 0.5% to 107.59 per dollar. The BoJ maintained its key interest rates and forward guidance. It said downside risks on overseas economies are likely significant.
Benchmark yield
Sovereign 10-year benchmark treasury yields rose to 6.84% tracking a cool-off in global yields and positive fund flow sentiment. Also, market participants would remain cautious ahead of the Union Budget presentation • US 10-year treasury yields continue to decline and were trading near three year lows.
Currency futures on NSE
The dollar-rupee June contract on the NSE was at 69.78 in the previous session. June contract open interest rose 3.7% in the previous session • We expect the US$INR to meet supply pressure at higher levels. Utilise the upsides in the pair to initiate short positions.
Intra-day strategy
US$INR June futures contract (NSE) View: Bearish on US$INR
Sell US$ in the range of 69.78 -69.82 Market Lot: US$1000
Target: 69.65 / 69.50 Stop Loss: 69.95
Support Resistance
S1/ S2: 69.61 / 69.43 R1/R2:69.91 / 70.00
Spot Currency
The rupee ended almost flat vs. the US$. It is expected to open stronger today tracking gains in Asian currencies, after the Federal Reserve signalled it was ready to cut interest rates as early as next month • The 10-year treasury yield dropped below 2% to its lowest since November 2016 and two-year rates continued to fall • The yen rose 0.5% to 107.59 per dollar. The BoJ maintained its key interest rates and forward guidance. It said downside risks on overseas economies are likely significant.
Benchmark yield
Sovereign 10-year benchmark treasury yields rose to 6.84% tracking a cool-off in global yields and positive fund flow sentiment. Also, market participants would remain cautious ahead of the Union Budget presentation • US 10-year treasury yields continue to decline and were trading near three year lows.
Currency futures on NSE
The dollar-rupee June contract on the NSE was at 69.78 in the previous session. June contract open interest rose 3.7% in the previous session • We expect the US$INR to meet supply pressure at higher levels. Utilise the upsides in the pair to initiate short positions.
Intra-day strategy
US$INR June futures contract (NSE) View: Bearish on US$INR
Sell US$ in the range of 69.78 -69.82 Market Lot: US$1000
Target: 69.65 / 69.50 Stop Loss: 69.95
Support Resistance
S1/ S2: 69.61 / 69.43 R1/R2:69.91 / 70.00
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