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Rupee Outlook and Strategy

* The US dollar slipped yesterday amid decline in US treasury yields and disappointing economic data. US jobless claims data showed number of people filling for unemployment benefits increased last week, signalling job market is also losing its steam. However, sharp downside was cushioned on hawkish statements from Fed officials. Cleveland Fed President Mester said the Fed should raise interest rates to above 4% to help bring inflation down

* Rupee future maturing on August 26 depreciated by 0.21% yesterday amid strong dollar, muted domestic markets and geopolitical uncertainty

* The rupee is expected to depreciate today amid disappointing macroeconomic data and concern over rising geopolitical tension over Taiwan. Meanwhile, market participants will remain vigilant ahead of RBI monetary policy meet, where central bank is likely to raise interest rate. US$INR (August) is expected to trade in a range of 79.20-79.80.

Dollar Index Vs US$INR

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