ICICIdirect expects the US dollar to gain support at lower levels. ''Utilise downsides in the dollar to go long on the USDINR pair. February futures in the range of 66.95-67.05 with target 67.30-67.50.''
The rupee fell to a one-week low against the USD, as banks stepped up purchases of the US currency while a rise in March US interest rate hike probability to almost 44% from 28% is weighing on the rupee.
The USD fell against major currencies undermined by an uptick in recent US economic data. US January housing starts and build permits data was higher-than-expected. US$JPY pair continued to see profit booking as a rise in JGB yields could make BoJ step down purchases supporting the Japanese Yen.
In the currency futures market, the most traded dollar-rupee February contract on the NSE ended at 67.11. The February contract open interest fell 4.96% from the previous day. March contract open interest rose 9.02% from previous day.
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