Buy US$INR June Fut; target of 67.80-68.00: ICICIdirect

ICICIdirect.com's report on currencyDebt market  • Government bond (10-year G-sec) prices moved higher, as value buying  amid hopes of a delayed Federal Reserve rate hike erased losses  triggered by the UK exiting the Eu ropean Union. Be nchmark 7.59% bond  maturing in 2026 ended at | 100.78 vs. previous close of | 100.74  • The benchmark 7.59% 2026 bond yiel d ended at 7.47%, down 1 bps  from the previous close of 7.48%  • The US treasury yield of the 10-ye ar benchmark settled at 1.56%, down  18 bps from the previous close of 1.74%  Forex (US$/INR)  • The rupee depreciated significantly to a near four-month low against the  US dollar, tracking a sell-off across global markets, after the UK voted to  move out of the European Union in a referendum. Dollar strengthened  over 2% and led most global currencies to their several month’s low  • The Indian currency ended the day at 67.96, down 1.06% from the  previous close of 67.25  • The dollar index against six major  currencies ended at 95.54, up 2.48%  from the previous close of 93.23  US$/INR derivatives strat egy: Buy June Contract  • In the currency futures market, the most traded dollar-rupee June  contract on the NSE ended at 67.98. Th e June contract open interest was  down 3.33% from the previous day  • July contract open interest was  up 19.39% from the previous day  • We expect the US dollar to garner buying support on declines against  the rupee. Utilise declines in the US$/INR June contract to buy   Intra-day strategy

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