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Currency Outlook

Rupee Outlook

• Rupee appreciated marginally yesterday amid weak dollar and improved domestic market sentiments. However, sharp gains were prevented on concern over rising crude oil prices

• Rupee is likely to appreciate today amid soft dollar. Dollar is showing weakness ahead of inflation data from US that could influence the path for Federal Reserve policy. Meanwhile, investors will remain cautious ahead of RBI monetary policy decision, where central bank is widely expected to keep interest rates unchanged. More focus will be on statements from RBI to get the clues on future rate trajectory. US$INR is likely to face hurdle near 82.95 and slip back till 82.65 level

Euro and Pound Outlook

• Euro ended on positive note amid weak dollar and rise in government bond yields. For today, EURUSD is likely to hold the support near 1.0940 level and rise back towards 1.1020 level amid expectation of correction in dollar. Moreover, traders will remain vigilant ahead of inflation figures from US for indications on where US Fed monetary policy is heading. However, sharp upside may be capped on risk aversion in the global markets. EURINR may rise till 91.30 level as long as it stays above 90.60 level

• Pound is expected move south towards 1.2670 level on pessimistic global market sentiments and worries over economic growth in Britain. Further, household and business are grappling with a cost of living crisis. GBPINR is likely to slip towards 104.90 level as long as it stays below 105.60 levels

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