ICICI Direct: Buy USDINR with a target of 83.20 on January 23, 2024

ICICI Direct: Buy USDINR with a target of 83.20 on January 23, 2024

ICICI Direct: Buy USDINR with a target of 83.20 on January 23, 2024

ICICI Direct reports that while the rupee appreciated on Friday owing to dollar selling by foreign banks, the week finished with expectations of a US rate drop and a decrease in equity outflows.

USDINR currency report from ICICI Direct

Foreign banks' dollar selling on Friday helped the rupee rise, but with expectations of a US rate decrease and muted outflows from stocks, the currency lost ground by the end of the week. With the US Treasury rates and the dollar both rising, the rupee is expected to trade with a weak bias. It's doubtful that the Federal Reserve would lower interest rates first in March, which would support the dollar's stability. Moreover, rupee appreciation would be restrained by money leaving domestic equities. Ahead of important US economic data, investors will continue to exercise caution as they reevaluate the possibility of a rate decrease in March. USDINR is probably going to level out around the 83.00–83.25 range. It will only unlock the doors to 83.40 above 83.25.