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Rupee Outlook and Strategy

* The US dollar index paused in its rally and steadied near 104.20 as a US debt ceiling deal lifted risk appetite in the world markets and dented the safe haven appeal of the dollar. However, the dollar remained calm yesterday amid a US bank holiday

* Rupee future maturing on June 27 depreciated by 0.03% on Monday

* The rupee is likely to appreciate amid softness in the dollar and rise in risk appetite in global markets. The progress in the US debt ceiling would dent the safe haven buying in the dollar. Further, expectation of a drop in US CB consumer confidence numbers could also hurt the dollar. The US$INR pair could face a hurdle near 82.80 and move towards 82.40. Only a close below 82.40 would lead to a slide towards 82.30

Euro and Pound Outlook

* The Euro held its ground near its lowest level 1.0710 yesterday as most of the markets remained closed. The weaker set of economic numbers from Germany last week have weakened the pair. Further, hawkish comments from ECB policymakers have supported the pair to hold its ground

* The Euro is likely to hold the key support near 1.070 and move towards its 10 day EMA at 1.0770 amid improved global risk sentiments and soft dollar. EURINR is likely to hold the key support near 88.50 and rebound towards 89.20

* The pound also traded in a sideways trend as the UK remained closed on Monday. The pair holds the key support of 1.230 and inched towards 1.260 amid improved risk sentiments and better than expected BRC shop price index numbers

* The pound is expected to gain its strength and rise back towards 1.24 amid softness in dollar and optimistic global market sentiments. GBPUSD is likely to hold the support of the lower Bollinger band near 1.2310 and move back towards 10 day EMA at 1.24. GBPINR could find support near 101.80 and inch higher towards 102.50

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