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Currency Outlook

Rupee Outlook

* Rupee hit its lowest level in two weeks on higher oil prices and strong dollar. Further rising US treasury yields also pushed the dollar index to hit its highest level in last 6-month.

* The pair is expected to hold the support near 82.80 and move higher towards 83.20 amid strong dollar and higher crude oil prices. The dollar is expected to remain firm amid rising concerns over global growth. Meanwhile, investors will remain focused on Fed members speech to get more clarity on the future rate path. USDINR is expected to move in between 82.80-83.20. Only close below 82.80 it would slide towards 82.60.

Euro and Pound Outlook

* Euro fell more than 0.5% amid strong dollar and weaker than expected economic numbers from Euro zone. However, it has recovered from its lowest level after the ECB’s monthly survey showed longer-term consumer price expectations increased. The pair is expected to remain under pressure amid expectation of weak economic numbers and strong dollar. EURUSD could hit the next key support at 1.07, as long as it trades under 1.0780. EURINR is likely to weaken towards 88.90, as long as the pair trades below 89.50 mark

* The pound has is likely to weaken towards 1.25 as the pair breached the lower band of the consolidation phase the 1.26-1.2750. The forecast of weaker economic numbers from the region could limit the upside in GBPUSD. GBPINR is expected to dip towards 104.00, as long as it trades under 104.80.

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