ICICIdirect expects the US dollar to find supports at lower levels. ''Utilise downsides in the pair to go long on the USDINR pair. March futures in the range of 65.25-65.35 with target 65.60-65.70.''

The rupee rose for a second day against the dollar, a sixth day of gain in seven sessions, as foreign banks and exporters continue to sell amid weakness in the USD. However, sharp gains in the rupee could be halted if domestic equities see profit booking.

The US dollar fell sharply against major currencies as US equities see highest profit booking since US presidential election results. The pound Sterling saw huge gains due to USD weakness and UK Prime Minister's decision to trigger Article 50 by March end.

We expect USD to remain under pressure as rate hike sentiment is already priced in. In the currency futures market, the most traded dollar-rupee March contract on the NSE ended at 65.31. The March contract open interest rose 3.98% from the previous day. April contract open interest rose 17.52% from the previous day.

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