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Below is quote on Evening Currency Update 12 November 2021 by Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives, Kotak Securities

“USDINR is going to close the week almost flat after the pair recovered from an IPO flow-related drop below 74 handle on November futures. There is a lack of direction in prices, due to a lack of dominant triggers. On one hand, the US Dollar index is trading at a fresh 52 week high, but on the other hand, Asian currencies are strengthening against the US Dollar. USDINR is caught between the two kinds of forces. Most of the other factors like oil prices and equity markets are mostly mixed. Hence, we are having days of range-bound trading activity.

Next week, there is no major high-profile economic data that can move USDINR out of the 74 and 75 range. Even if USDINR were to decline towards 74.00 due to risk-on mood in the equity markets and strength in Asian currencies, we expect RBI to step in to check appreciation in the Indian Rupee. As a result, we could be in for another week of range-bound trading within the levels of 74 and 74.80 on November futures. One can focus on options selling strategies to benefit from the lack of direction in markets.”

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