Sell USDINR with a target of 83.15; ICICI Direct, December 27, 2023

 Sell USDINR with a target of 83.15; ICICI Direct, December 27, 2023

Sell USDINR with a target of 83.15; ICICI Direct, December 27, 2023

ICICI Direct: Due to FII withdrawals and month-end dollar demand from importers, the rupee fell yesterday.

USDINR currency report from ICICI Direct

Yesterday, withdrawals from FIIs and month-end dollar demand from importers caused the currency to weaken. The dollar approached a five-month low and the rupee restrained a precipitous drop in crude oil prices as data from the PCE price index revealed that annual US inflation dropped below 3% in November. Today's decline in US Treasury rates and currency weakening could help the rupee strengthen. Yields have decreased in response to recent inflation statistics, which has increased anticipation that the US Federal Reserve would begin reducing rates in March of next year. The rupee will also be supported by improving economic statistics, positive mood on the home market, and declining crude oil prices. India's CAD shrank to 1% of GDP in Q2FY24, down from 3.8% a year earlier and 1.1% in the previous quarter. As long as it stays below 83.40 levels, USDINR might drop to levels seen in January of 83.15.