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Daily Currency Snapshot

* The US dollar slipped yesterday amid a rise in risk appetite in global markets and decline in US treasury yields. Additionally, investors remained cautious ahead of outcome of midterm election, which is expected to result in divided government

* Rupee future maturing on November 28 appreciated by 0.47% on Monday amid weakness in the dollar, rise in risk appetite in domestic markets and FII inflows. Further, the rupee gained strength on softening of crude oil prices

* The rupee is expected to trade with a positive bias on optimistic global market sentiments and weak dollar. Further, market participants will remain careful ahead of result of US midterm election as it will decide who loses or retain congressional control raising possibility of legislative gridlock. Additionally, FII inflows and decline in crude oil prices may support rupee. US$INR (November) is expected to trade in a range of 81.25-81.75

* The Euro appreciated yesterday amid weakness in the dollar and rise in risk appetite in the global markets. Further, the Euro gained strength on a surge in German bond yields. Yields rallied on anticipation that European Central Bank may tighten monetary policy further to combat soaring inflation

* The Euro is expected to trade with a positive bias mainly on the back of weakness in the dollar and optimistic global market sentiments. Meanwhile, a series of disappointing economic data from euro area raised concerns over economic slowdown, which may hurt the single currency. EURINR (November) is expected to trade in a range of 81.80-82.40

* The pound appreciated yesterday amid a weakness in dollar and rise in risk appetite in global markets. Meanwhile, sharp upside in sterling was capped as Bank of England Chief Economist Huw Pill warned of difficult path ahead of British economy

* The pound is expected to trade with a positive bias amid weakness in the dollar and optimistic global market sentiments. Dollar is showing softness as investors are vigilant ahead of inflation data and outcome of midterm elections from the US. Market participants will scrutinise the inflation data to see how will it impact the US Fed rate hike decision. Additionally, outcome of midterm elections will decide who will control congress. Divided government may raise possibility of legislative gridlock

* Moreover, British Finance Minister Jeremy Hunt will deliver his planned fiscal statement next week where he is expected to raise taxes and slash spending. GBPINR (November) is expected to trade in a range of 93.75-94.40

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