ICICIdirect expects the USD to meet supply pressure at higher levels. ''Utilise upsides in the pair to go short on the USDINR pair. May futures in the range of 64.60 -64.70 with target 64.40-64.30.'' The rupee rose for a second day against the USD, as a surge in equities amid uncertainty over Donald Trump's economic agenda for the US suppressed the US dollar.
The USD continue its losses while the euro and Japanese Yen posted gains due to political actions of the US President while news of an alleged terrorist attack in Manchester supported safe haven buying.
We expect Japanese Yen to remain supported due to waning risk-on sentiment and dying reflation trades. In the currency futures market, the most traded dollar-rupee May contract on the NSE ended at 64.60. The May contract open interest declined 1.22% from the previous day. June contract open interest increased by 11.70% in the last session.
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