ICICIdirect expects the USD to find supports at lower levels. ''Utilise downsides in the pair to go long on the USDINR pair. June futures in the range of 64.50-64.60 with target 64.80-65.00.''
The rupee posted its best weekly increase in nearly a month against the USD, as record gains in domestic equities boosted hopes of more foreign fund inflows. The USD recovered some of its losses mainly on account of weaker British pound.
UK's Labour party has closed the lead slightly from the ruling Conservative party. GBP is expected to remain volatile until UK general elections on June 8. We expect the JPY to remain supported due to rising political uncertainty raising safe haven buying demand.
In the currency futures market, the most traded dollar-rupee June contract on the NSE ended at 64.69. The June contract open interest increased 11.70% from the previous day. July contract open interest increased 1.81% in the last session.