Buy USDINR; target of : 76.80 : ICICI Direct

ICICI Direct, The US dollar rallied amid surge in US treasury yields and hawkish statement from Fed officials.

April 20, 2022 / 09:34 AM IST

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ICICI Direct’s currency report on USDINR

The US dollar rallied amid surge in US treasury yields and hawkish statement from Fed officials. Chicago Fed President Charles Evan signalled that he is comfortable with a round of rate hike this year including two 50 bps increases. Additionally, better than expected economic data from US and divergence in global monetary policy supported dollar • Rupee future maturing on April 27 depreciated by 0.37% yesterday amid risk aversion in the domestic markets and strong dollar. Further, rupee slipped on persistent FII outflows • The rupee is expected to depreciate today amid firm dollar and consistent FII outflows. Further, international agencies like World Bank and IMF slashed its forecast for global economic growth citing Russia’s invasion of Ukraine. IMF reduced India’s growth outlook. It expects economy to grow by 8.2% in FY23 compared to 9% estimated in January. It also expects current account deficit for FY23 to be 3.1% of GDP.

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