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Currency Outlook

Rupee Outlook

* Rupee ended little changed yesterday despite of softness in dollar and improved domestic market sentiments

* Rupee is likely to face the hurdle near 83.20 level amid softness in dollar, decline in crude oil prices and improved Asian market sentiments. Dollar is showing some weakness on expectation of disappointing economic data from US. Additionally, investors braced for central bankers gathering at Jackson Hole Symposium for outlook on interest rates. US$INR is likely to remain in the range of 82.90-83.20. Only a move above 83.20 would bring fresh buying interest in the pair. Similarly, a move below 82.90 would push the pair towards 82.80 level

Euro and Pound Outlook

* Euro ended on positive note amid soft dollar, surge in European government bond yields and rise in risk appetite in the domestic markets. For today, EURUSD is likely to rise towards 1.0950 level as long as it trades above 1.0880 level on the back of weak dollar and expectation of improved economic data from euro area. EURINR may hold the support near 90.30 level and rise towards 91.00 level

* Pound edged higher aided by weakness in dollar and rise in government bond yields. For the day, the pair is expected to move north towards 1.2820 level as long as it stays above 1.2730 level amid soft dollar and on anticipation that BOE will continue to hike rates. Further, pound may rally on expectation of improved economic data from Britain. GBPINR is likely to move higher towards 106.50 level as long as it trades above 105.70 levels

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