Today is weekly expiry (Nov 3) for currency at 12:30 pm. First half of the day until expiry, USDINR may trade soft as it also coincides with Paytm anchor book opening. Anchor investors who would not have converted their dollar yesterday has to do today, before putting in the bid.
Though, it is expected that large part of conversion would have happened yesterday itself.
Today is also an important day for financial markets, as FED meeting is there in late evening. The reaction of the same will be felt tom but since we are closed and has only one hour of Muharat trading, need to be cautious.
While post expiry today, action will shift to Nov 12 weekly contract, it is better that any short vols or naked position in weekly or monthly is carried overnight with tight hedges, not only because of FED outcome but also the long weekend + BoE meeting + NFP + OPEC meeting.
There are enough events lined up over the next two days which can create volatility across the markets. In such circumstances, going light may not be a bad idea or express view through long options, whichever side you see underlying moving.
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