ICICIdirect expects the USD to meet supply pressure at higher levels. ''Utilise upsides in the pair to go short on the USDINR pair. April futures in the range of 64.80-64.90 with target 64.65-64.55.''
The rupee fell for a second day against the dollar in range bound trading, dragged by weak domestic equities and USD purchases by state-run banks for their importer clients. The dollar index fell sharply against major currencies as sharp gains in the GBP and euro weighed on the USD.
The GBP gained almost 2.20% as the UK Prime Minister has called for snap general elections in June. The euro also gained tracking political developments in France. We expect the USD to remain subdued as US interest rate hike prospects could take a backseat amid a host of geo-political uncertainties.
In the currency futures market, the most traded dollar-rupee April contract on the NSE ended at 64.60. The April contract open interest fell 6.65% from the previous day. May contract open interest rose 3.59% from the previous day.
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