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Currency Outlook

Rupee Outlook

• Rupee is expected to hold its gains amid weakness in dollar. The drop in US producer prices reinforced the view that inflation is moderating. The softness in the inflation numbers has raised the bets that the Federal reserve would hike interest rates just one more time this year. Meanwhile, expectation of better economic numbers from US could provide some support to the dollar

• US$INR is likely to face the hurdle near 82.30 and decline towards 81.90. A move below 81.90 would weaken the pair further towards 81.80

Euro and Pound Outlook

• Euro is likely to hold its gains amid weakness in the dollar. The hawkish minutes of June ECB meeting also strengthened the prospects of further hike in interest rate. EURUSD is most likely to rise towards 1.1270 level as long as it trades above 1.1160. EURINR may find the support near 91.70 level and rise towards 92.40 level.

• Pound is expected to hold its gains amid a weaker dollar. For GBPUSD 1.3030 could act as key support and on the upside 1.3150 would remain as major hurdle. A move above 1.3150 it would open the doors for 1.32. GBPINR is likely to move in the range of 107.00-108.00. Only above 108.00 it would rise towards 108.50

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