The Rupee settled unchanged against the US dollar as state-run banks’ greenback bids, likely for oil importers, offset gains from rising equities The Indian currency ended the day flat at 66.43 levels The dollar index against six major currencies ended at 94.05, up 0.08% from the previous close of 93.97

Government bond (10-year G-sec) prices ended flat, off their intraday highs, as some traders cut positions ahead of a fresh supply of notes on Wednesday. However, above-normal monsoon prediction and hopes that retail inflation will cool further limited losses, as both will give the central bank further room to ease policy rates further, going ahead. The benchmark 7.59% bond maturing in 2026 ended flat at |101.17 vs. the previous close of | 101.18 The benchmark 7.59% 2026 bond yield ended flat at 7.42% The US treasury yield of the 10-year benchmark settled at 1.78%,up 6 bps from the previous close of 1.72%

In the currency futures market, the most traded dollar-rupee April contract on the NSE ended at 66.56. The April contract open interest was up 1.39% from the previous day May contract open interest was up14.78% from the previous day We expect the US dollar to meet supply pressure on pullbacks against the rupee.Utilise pullbacks in the US$/INR April contract to sell

The rupee trimmed its initial gains, but was still trading up by 5 paise to 66.38 against the American currency in late morning deals on bouts of dollar selling from banks and exporters amid rally in equities. The domestic currency resumed higher at 66.35 as against yesterday's level of 66.43 per dollar at the Interbank Foreign Exchange (Forex) market here. It gained further to 66.33 before quoting 66.38 at 1030 hrs. The domestic unit hovered in a range of 66.33 to 66.42 per dollar during the morning deals. The dollar index was up 0.16 percent at 94.22 as against a basket of six global currencies in Asian trade after leading producers agreed on output cap. Meanwhile, the benchmark BSE Sensex was trading up 425.55 points or 1.69 percent at 25,571.14 at 1050 hrs.

US$INR Apr futures contract (NSE) View: Bullish on INR Sell US$INR in the range of 66.75-66.85 Market Lot: US$1000 Target: 66.55-66.38 Stop Loss: 66.95 Support Resistance S1/ S2: 66.40/66.20 R1/R2:66.65/66.85

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