ICICIdirect expects the USD to meet supply pressure at higher levels. ''Utilise upsides in the pair to go short on the USDINR pair. June futures in the range of 64.50-64.60 with target 64.25-64.15.''
The rupee rose for the first time in three sessions against the USD, as a fall in May retail inflation supported gains in the rupee on expectations of improving macro fundamentals. The USD remained defensive ahead of the US FOMC meeting today.
The Fed is widely expected to raise benchmark rates by a quarter percentage point. Traders await Fed's economic outlook assessment for cues on the pace and quantum of further rate hikes in the near term. USDJPY could rally sharply if fed remains hawkish in today's meeting.
In the currency futures market, the most traded dollar-rupee June contract on the NSE ended at 64.48. The June contract open interest declined 0.76% from the previous day. July contract open interest increased 0.89% in the last session.
Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.