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Rupee Outlook

* US dollar declined 0.14% yesterday amid disappointing economic data from the US. US unemployment claims data showed number of people filling for jobless claims rose by 23,000 for the week ending January 8, 2021. Further, US producer price inflation slowed down as cost of goods fell, signalling inflation has probably peaked

* Rupee future maturing on January 27 appreciated by 0.04% mainly on the back of weakness in dollar and rise in risk appetite in the domestic markets

* The rupee is expected to depreciate on risk aversion in the global markets and elevated crude oil prices. Additionally, investors will remain cautious ahead of major economic data’s from US. However, sharp fall may be prevented amid weakness in dollar. Dollar is losing its strength as investors believed for now that several US rate hikes this year are priced in. US$INR (January) is expected to trade in a range of 73.85-74.25

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