Currency Trading Today: Profit booking lending weakness in greenback; Sell USDINR futures for this target, Buy JPYINR, says this analyst

USDINR Futures: Indian Rupee traded lower against the greenback on Thursday. At the interbank foreign exchange market, rupee settled 10 paise lower to close at 77.60 against the US dollar according to a PTI report. It opened lower at 77.61 against the greenback and shuttled between 77.63 and 77.54.

Meanwhile, the NSE 28 June USDINR futures ended at 77.77, down by 3 paise or 0.04 per cent from the previous closing price of 77.73. The intraday high was at 77.82. Technical Analyst Anuj Gupta said that USD is expected to show some weakness in the near term amid profit booking. He recommends a ‘Sell’ strategy on USDINR futures.  

Gupta, who is Vice President (VP), Commodity and Currency Research at IIFL Securities said that 28 June USDINR Futures must be sold at 78 with a stop loss of 78.35 and price target of 77.20. The strategy is when currenty markets reopen on Friday.

According to him, rupee could test levels of 77 against the USD.  

The dollar index, which measures the US Dollar’s strength against a basket of six currencies, was trading 0.25 per cent lower at 102.24.

"Rupee continued to trade in a narrow range and volatility remained low despite marginal gains in domestic equities. Dollar rose against its major crosses after manufacturing PMI came in better-than-estimate," this PTI report said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services.

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Somaiya further said "we expect the USD-INR to trade sideways and quote in the range of 77.20 and 77.80."

Dollar’s weakness will also be beneficial to Japanese Yen, Gupta said and investors looking for investments in currency futures may look to buy JPYINR futures.

The 28 June JPYINR futures ended at 60.06 today and was down by 5 paise or .08 per cent from the Wednesday closing price.

Gupta recommends a buy at 59.50 with a stop loss at Rs 58.80 and target price at Rs 61.

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)