ICICIdirect expects the US dollar to find supports at lower levels. ''Utilise downsides in the dollar to go long on the USDINR pair. March futures in the range of 66.85-66.95 with target 67.25-67.45.''
The rupee ended with mild gains against the USD as traders remained cautious ahead of GDP and fiscal deficit data. Domestic Q3 GDP was at 7% while annual is estimated at 7.1% beating lower estimates of 6.8%.
Although the US dollar index ended almost unchanged, it has made overnight gains on US Fed official’s hawkish comments and US President's speech. The Japanese Yen has come under profit booking as the USDJPY pair remains most immune to rate hike prospects among major pairs.
In the currency futures market, the most traded dollar-rupee March contract on the NSE ended at 66.93. The March contract open interest rose 0.66% from the previous day. April contract open interest rose 7.20% from the previous day.
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