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Currency Outlook

Rupee Outlook

* Rupee depreciated yesterday amid rise in crude oil prices and dollar buying by importers. Further, rebound in dollar and foreign fund outflows from equity markets weighed on rupee

* Rupee is likely to appreciate today amid weakness in dollar, optimistic global market sentiments and sharp decline in US treasury yields. Yields are tumbling as data from US showed job openings fell to the lowest level since March 2021 and consumer confidence fell more than expected in August. Reports have boosted hopes that Fed will hold interest rates steady at next month’s policy meeting. US$INR is likely to face hurdle near 82.70 level and move south towards 82.45 level

Euro and Pound Outlook

* Euro ended on positive note amid weak dollar and rise in risk appetite in the global markets. However, further upside was capped as German confidence fell to 4-month low. For today, EURUSD is likely to rise further towards 1.0920 level as long as it trades above 1.0840 level amid weakness in dollar and optimistic global market sentiments. Meanwhile, investors will remain cautious ahead of CPI data from Germany and Spain, as it would help to determine the outlook for interest rate. EURINR may move north towards 90.20 level as long as it stays above 89.45 levels

* Pound is expected to hold support near 1.2590 level and strengthen towards 1.2680 level on soft dollar and improved global market sentiments. Further, traders await comments from BOE Chief Economist Huw Pill later this week for more clues on rate trajectory. GBPINR is likely to rise towards 104.80 level as long as it trades above 104.00 level

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