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 65.55-65.65 with target 65.40-65.30.''
The rupee fell for the first time in three sessions against the dollar, as doubts over the US President’s ability to push through policy reforms and tax cuts drove investors towards safe-haven assets. The US dollar continued to slide against maor currencies. Market participant are awaiting the repealing of Obamacare. Any delay could derail the US president’s tax reforms and higher spending plans.
Japanese Yen gained sharply amid weak USD and safe haven demand. In the currency futures market, the most traded dollar-rupee March contract on the NSE ended at 65.51. The March contract open interest fell 12.35% from the previous day. April contract open interest rose 7.86% from the previous day.
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