Weakness in USDINR Futures continue for second day in a row on stronger rupee - Experts share intraday trading strategy

Indian Rupee sustained its strength against the US Dollar on Thursday for the second day in a row with the USDINR November Futures trading negatively around 12:45 pm. After closing at 74.27 on Wednesday, 18 November USDINR futures opened lower and slipped further as the trading session progressed. The greenback was trading at 74.13, down by 14 paise or 0.20 per cent from the last closing price.   

The US Dollar hovered below a 16-month peak in Asian trade on Thursday, losing ground on the New Zealand Dollar, after having fallen against the pound and yen overnight, Reuters reported. The dollar index, which measures the currency against a basket of six rivals, hit its highest since mid-July 2020 on Wednesday at 96.226. 

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However, "the sustainability of the current Dollar strength beyond the next few months looks far from certain," this report said quoting Luc Luyet, FX strategist at Pictet Wealth Management. "Market expectations of the Fed are starting to be particularly hawkish, suggesting limited tailwinds for the US dollar going forward from that factor," the report further said. 

Currency Research Analyst at Motilal Oswal Gaurang Somaiya in his report attributed the strength in Rupee to fund flows in the primary markets. On Wednesday, Rupee traded with a positive bias but continued to trade in a broad range despite gains in the Dollar against its major crosses and losses in domestic equities, it said.  

However, the Dollar retraced yesterday after US single family homebuilding tumbled in October while the number of houses authorised for construction but not yet started jumped to a 15-year high.  

“We expect the USDINR (Spot) to trade sideways and quote in the range of 74.05 and 74.70,” the report said. Somaiya’s intraday strategy was on 26 November USDINR futures. Buy 74.50 CE/Sell 74.75 CE, report said.  

USDINR Futures Trading Strategy - Analyst Anuj Gupta, who is Vice President (VP), Commodity and Currency Research at IIFL Securities recommends a Sell at 74.40 with a target of 74.10 and a stop loss of 74.60.  

INR vs other major currencies  

EURINR (18 November) – EURINR was also trading with weakness and trading at 83.90 on Thursday around at this time, down by 0.15 per cent or 12 paise from the previous closing price of 84.03. It attained a high of 84.08 on the intraday basis.   

Gupta recommends Sell at 84.50 with a stop loss of 84.80 and target 83.80. 

GBPINR (18 November) – GBPINR was trading at 100.02 on Thursday around this time, up by 0.19 per cent or 19 paise from the previous closing price of 99.83. The intraday high was 100.12. Gupta recommended a Sell at 100.20. He puts the stop loss at 100.60 while the target at 99.50.   

 JPYINR (18 November) – JPYINR November Futures were trading at 64.90, up by 19 paise or 0.29 per cent from the previous closing price of 64.71. It attained a high of 65.05 on the intraday basis. No strategy was recomended.    

(Disclaimer: The views/suggestions/advices 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.)