Federal Reserve has brought hope in the U.S markets as news of monetary tightening has increased the demand of their currency. Federal Reserve’s monetary withdrawal news has shaken the global economies and has initiated selling in cross countries. Indian budgetary hopes are high, government might come up with various measures to support their next year elections. Indian economic numbers have brightened which has increased the demand of Indian assets and has given support to rupee.
3rd Week, February 2013
18 Feb: Close 54.33 – U.S markets was on leave and no major events from Indian markets had ceased the volatility.
20 Feb: Close 54.17 – Less volatility and negative figures from US real estate markets has increased bearish momentum on their currency.
21 Feb: Close 54.57 – Improved consumer prices index and increased existing home sales has given support to their currency.
22 Feb: Close 54.29 – No major events for the day and technical selling in USDINR has increased the pressure on USD.
4th Week, February 2013
25 Feb: Budgetary week might increase the volume however, volatility is expected to be less on the given day hence SELL ITM Call and Put is recommended....
26 Feb: US might come up with improved consumer confidence and home sale figures hence buy some OTM puts with USDINR future…….
27 Feb: Home Sales figures from U.S might improve with increases durable goods order hence buy USDINR for the day.......
28 Feb: Budget day and Indian government might portray beautiful picture for the economy take cautious selling position in USDINR with some OTM calls or go for delta hedging(Buying OTM Puts and Calls).....
01 Mar: U.S manufacturing might fall hence buy some puts with buying USDINR future.......
