Currency Trade Today: Buy USDINR October Futures for these targets – know key triggers

Rupee consolidated in a narrow range on Monday ahead of the important Reserve Bank of India (RBI) policy statement that is scheduled at the end of the week. Expectation is that the Central Bank could maintain a hawkish stance and that could support the rupee, a Motilal Oswal report said.  

On Tuesday, the USD INR October futures were trading with strength, appreciating by 32 paise or 0.42 per cent from the Monday closing price around 9:45 am. It was trading at 74.79 which was also its intraday high. The USDINR futures opened at 74.65. 

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The brokerage firm expect the USDINR(Spot) is expected to trade with a positive bias and quote in the range of 74.20 and 74.80. 

It recommends a buy in USDINR Oct futures. Weekly Expiry USDINR Sell 74.75CE / 74PE. 

Expert Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities recommends a buy at 74.40 with a stop loss at 74.10, while the target price at 75.30. He sees a support at 74.40 while the resistance at 75.30.  

Dollar in the Asian session rose but retraced in the latter half of the day following profit booking at higher levels.  

Triggers 

- Market participants remain cautious ahead of the important non-farm payrolls number that will be released from the US later this week. Friday's data is expected to show continued improvement in the job market, with a forecast for 488,000 jobs to have been added in September enough to keep the Federal Reserve on course to begin tapering before year's end.  

- On Monday, the Commerce Department said that factory orders increased 1.2 per cent in August and data for July was revised higher to show orders rising 0.7 per cent instead of gaining 0.4 per cent as previously reported.  

- Today, focus will be on the services PMI (Purchasing Managers Index) number that will be released from the US, UK and the Euro zone.  

How other currencies were trading today: 

EURINR (October) – EURINR was trading at 86.61 on Tuesday around this time, up by 0.17 per cent or 15 paise from the previous closing price of 86.46. It attained a high of 86.62 on the intraday basis. The support is at 86.50 while the resistance at 87.20. He has no recommendation on it.  

Motilal Oswal has a sell recommendation on it.  

GBPINR (October) – GBPINR was trading at 103.47 on Tuesday around this time, up by 1.17 per cent from the previous closing price of 102.27. It was also its intraday high. He recommends a buy at 101.30 with a stop loss at 100.80 and a target price of 101.30. The important support is at 101.30 while the resistance is at 102.30. 

JPYINR (October) – JPYINR was trading at 67.13 on Tuesday around this time, up by 0.44 per cent or 30 paise from the previous closing price of 66.84. It attained a high of 67.15 on the intraday basis.