ICICIdirect expects the US dollar to meet supply pressure at higher levels. ''Utilise upsides in the pair to go short on the USDINR pair. March futures in the range of 65.50-65.60 with target 65.40-65.30.''

The rupee rose to a fresh near-17-month high against the dollar, in line with most Asian currencies as the USD stayed under pressure after the US Fed maintained its stance of a gradual pace of rate hikes in 2017.

The US dollar posted minor gains against major currencies in otherwise calm forex markets. We expect the US$ to remain under pressure and in consolidation as major dollar positive sentiment is already priced in. The pound fell as the UK has conveyed to Europe on triggering Article 50, setting the stage for two years of negotiation for separation from EU.

In the currency futures market, the most traded dollar-rupee March contract on the NSE ended at 65.44. The March contract open interest fell 1.80% from the previous day. April contract open interest rose 6.99% from the previous day.

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