USDINR Futures: Will weakness in INR continue? Which way will Dollar move? Know the expert opinion for MAXIMISING gains?

Will weakness in rupee continue or will there be some letting down? Expert Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities said that the recent weakness in US Dollar has helped INR gain apart from a good show from the equity markets. But the ongoing pandemic situation is acting as a spoilsport with restriction in place across the country. The disruption in economic activity will act as a strong headwind for the INR movement.

However, the traders of USDINR Futures are expected to gain from the weakness in rupee and can make handsome gains, Gupta said.

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According to Gupta, the USD INR futures are expected to trade in a range bound manner in near term.

For today, brokerage firm Motilal Oswal expects the USDINR (Spot) to trade sideways and quote in the range of 73.20 and 73.80.

USDINR April Futures

At 2:40 pm on Monday, The USDINR April Futures on NSE were trading at 73.59, going down by almost 0.1 per cent from the last closing price of 73.66. It hit an intraday high of 73.67. The VP recommends a Buy on USDINR May Futures at 73.30. He puts the stop loss at 73.00 while the target price at 73.90.

Things to Watch Out For

Market participants have been a little cautious following restrictions announced by various states on the back of increasing number of COVID cases in India. But the reaction of the currency has been muted, a report by Motilal Oswal said. This week, on the domestic front, inflation and industrial production number will be important to watch. Higher inflation number could keep the rupee weighed down against the US dollar, it further said.

In the recent past reaction of the rupee has been low despite the FIIs being net sellers in the equity segment. This month until now the FIIs have taken out almost a billion dollar including both equity and debt segment, this report said.

How other currencies traded today:

EURINR (May) – EURINR was trading at 89.35 on Monday around this time, up by 0.66 per cent from the previous closing price of 88.76. It attained a high of 89.00 on the intraday basis.

GBPINR (May) – GBPINR was trading at 103.47 on Monday around this time, up by 1.17 per cent from the previous closing price of 102.27. It was also its intraday high.

JPYINR (May) – JPYINR was trading at 67.48 on Monday around this time, up by 0.25 per cent from the previous closing price of 67.31. It attained a high of 67.50 on the intraday basis.