IGI Logo

Rupee Outlook and Strategy

• US dollar rebounds on weak global market sentiments and hawkish statement from Fed officials. St Louis Fed President Bullard said Fed needs to raise interest rates quite a bit further and then hold them throughout next year and into 2024 to gain control of inflation and New York Fed President John Williams said “there is still more world to do” to bring down prices

• Rupee future maturing on December 28 appreciated by 0.12% on softening of crude oil prices, FII inflows and optimistic domestic market sentiments

• Rupee is likely to depreciate today amid re-bounce in dollar and weak global market sentiments. Market sentiments are hurt on concern over widespread protest across China and hawkish comments from Fed officials. US$INR (December) may take support near 81.60 levels. As long as it sustains above this level it may rise to 82.05 levels

Euro and Pound Outlook

• Euro slipped yesterday amid re-bounce in dollar and risk aversion in the global markets. Additionally, disappointing economic data from euro area added downside pressure. Meanwhile, ECB President Lagarde signalled series of rate hikes ahead. She said Euro Zone inflation has not peaked and it risk turning out even higher than currently expected

• Euro is expected to trade with a negative bias on strong dollar and weak global market sentiments. Further, expectation of disappointing economic data from euro area and fears that euro zone my slip into recession may hurt single currency. EURUSD is facing resistance near 1.0410 levels, as long as it sustains below this level EURUSD may slip back to 1.0270 levels. EURINR (December) is expected to trade in a range of 84.70- 85.35

• Pound depreciated yesterday majorly on the back of strong dollar and risk aversion in the global markets. Additionally, disappointing economic data from Britain added downside pressure on sterling. However, sharp downside was cushioned on anticipation that BOE will continue to tighten it monetary policy to combat soaring inflation

• The pound is expected to trade with a negative bias on strong dollar and pessimistic global market sentiments. Further, expectation of disappointing economic data from country will hurt pound. GBPUSD is facing strong resistance near 1.2100 level. As long as it sustains below this level pound may slip back to 1.1880 levels. GBPINR (December) is expected to trade in a range of 97.80-98.40

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