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Currency Outlook

Rupee Outlook

* Rupee appreciated on Friday amid strong macro economic data and gains in domestic equities. Meanwhile, investors remained cautious ahead of job report from US to get more cues on interest rate outlook

* Rupee is likely to depreciate today amid strong dollar and rise in US treasury yields. Dollar gained strength following mixed jobs report for August and better than expected ISM manufacturing index. Additionally, hawkish comments from Cleveland Fed President Mester supported dollar. Furthermore, investors fear that a surge in crude oil prices will lead to rise in inflation and even impact current account deficit. US$INR is likely to rise further till 82.80 level as long as it stays above 82.50 levels

Euro and Pound Outlook

* Euro ended on negative note amid strong dollar and disappointing economic data from euro zone. Additionally, dovish statement from ECB policymaker impacted single currency. ECB governing council member Villeroy said we are close or very close to an interest rate peak and keeping rates high for long enough matters more. For today, EURUSD is likely to slip further towards 1.0750 level as long as it trades below 1.0810 level amid firm dollar, expectation of weak economic data and dovish statements from ECB policymakers. EURINR may slip towards 88.75 level as long as it stays below 89.60 levels

* Pound is expected to weaken further towards 1.2540 level as long as it stays below 1.2640 level amid strong dollar and disappointing economic data from Britain. GBPINR is likely to slip towards 103.60 level as long as it trades below 104.60 level

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