IGI Logo

Currency Outlook

Rupee Outlook

*Rupee depreciated yesterday amid strong dollar and risk aversion in the global markets. Market sentiments were hurt as weaker than expected trade data from China raised concerns about economic outlook. Additionally, concerns over banking sector resurfaced after credit rating agency Moody’s cut ratings of several small and mid-size US banks and said may downgrade some of nation’s biggest lenders

* Rupee is likely to appreciate today amid expectation of correction in dollar after dovish comments from Fed official. However, sharp gains may be prevented on weak global market sentiments. Additionally, investors will closely monitor US CPI data and RBI monetary policy due tomorrow. US$INR is likely to face hurdle near 82.95 and slip back till 82.70 level

Euro and Pound Outlook

*Euro ended on negative note amid strong dollar weak global market sentiments. For today, EURUSD is likely to hold the support near 1.0930 level and rise back towards 1.1000 level amid expectation of correction in dollar. However, sharp upside may be capped as global markets are on defensive after China inflation data confirmed recovery in world second largest economy is losing momentum and concerns about US bank stability resurfaced. EURINR may rise till 91.10 level as long as it stays above 90.60 level

* Pound slipped yesterday amid firm dollar and slowdown in UK consumer spending. For today, Pound is expected move north towards 1.2800 level amid expectation of correction in dollar. GBPINR is likely to hold the support near 105.20 level and rise towards 105.85 levels

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html
SEBI Registration number INZ000183631

Above views are of the author and not of the website kindly read disclaimer