ICICIdirect expects the US dollar to attract some selling pressure on rallies against the INR. ``Utilize the highs in the USD/INR February contract to sell below 49.22 with target of 49.06/48.98 and a stop loss of 49.30,`` it says.
``In the currency futures market, the most traded near-month dollar-rupee contract on the NSE closed at 48.95. The USD/INR February open interest was up by 3.7%. The March contract witnessed an increase in open interest by 5.5%,`` it notes.
SMC Global Research:
> The euro weakened against 14 of its 16 major counterparts before Greek leaders respond today to demands by international creditors on economic measures.
> European leaders maintained pressure on Greece to accept terms demanded by international lenders during a weekend of talks to avert a financial collapse.
> The trade deficit in the US probably widened in December to a six-month high as imports climbed faster than exports, economists said a report this week will show.
> Canada`s dollar advanced for a fourth week against its US counterpart, its longest stretch of wins since October, as stronger economic data from the nation`s biggest trade partner helped fuel appetite for riskier assets.
> Asian currencies snapped a four-day advance on concern recent gains underestimated the risks to global growth from Europe`s still unresolved debt crisis.
Emkay Global Services:
``Overseas indication for positive for the dollar this morning. The Euro was down almost 0.20% to a dollar while the yen was also lower by a similar magnitude. Cues for the equity markets were positive and this could add could limit the rise in the rise in the dollar in morning trade.``
Commenting on the strategy on USDINR Futures December Series, broking firm Emkay Global said, ``The USD is showing strength internationally but it is possible that may not translate into significant strength in the Indian markets. Local sentiments are very positive over Indian growth and economy and this has resulted in improved dollar flows into the Indian markets. But on an intraday basis we could see a pullback in the USDINR if equity markets turn negative, which in our opinion is possible today. Hence, the buy recommendation.``