Published on 24/07/2020 2:23:14 PM | Source: Emkay Global Financial Services Ltd

This week USDINR spot traded in a very tight range of 74.50-75 By Rahul Gupta, Emkay Global

Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel 

Download Telegram App before Joining the Channel

Below is the Quote on Rupee by Mr. Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services:  

“This week USDINR spot traded in a very tight range of 74.50-75. The pair was unable to fall below 74.50 on likely RBI intervention and caution over US-China trade war. If the trade tiff escalates then fears of US ending the Phase-One deal will arise keeping USDINR afloat. But we don’t expect a sharp rally as traders are focusing on the coronavirus vaccine developments and are pretty convinced over getting additional stimulus packages. In spot 75 is acting as a psychological resistance, a consistent trading above that will lead to a rally towards 75.50. The USD/INR 1-month ATM Volatility has dropped to 5% from 5.67% as on Jul 14. The fall in ATM Volatility Term structure indicates that the market is not showing signs of stress. Also, USDINR PCR (Put/Call ratio) has fallen to 0.87% from 0.91% seen last week. Also, with 5 days left for the expiry, according to the Max Pain theory, the USD/INR July contract will expire in between 75-75.25. Thus, until significant cues, we expect USDINR will continue the sideways move within a broader range of 74.50-75.50. Only either side break will clarity over the trend.”


Above views are of the author and not of the website kindly read disclaimer