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Currency Outlook :

Rupee Outlook :

• Rupee is likely to appreciate today amid weakness in dollar as the weaker US economic numbers has raised the doubts on further tightening. Moreover, comments from Fed officials reinforced market expectation that US central bank is near the end of its tightening cycle. Meanwhile, focus will shift towards this weeks key US inflation numbers which could bring more clarity on the future rate trajectory

• US$INR is likely to slip back towards 82.50 as long as its trades under the 82.80 mark. A move below 82.50 would weaken further towards 82.30

Euro and Pound Outlook

• Euro is likely to trade with bullish bias amid weakness in the dollar. Further, rising 10 year German bund yields to 4- month highs has strengthened the euro’s interest rate differentials. EURUSD is likely to rise towards 1.1030 level as long as it stays above 1.0970. EURINR may find the support near 90.50 level and rise towards 91.20 level.

• Pound is likely to hold its gains amid a weaker dollar. Further, expectation of rise in wage inflation in UK could also force the BOE to stick to its tight monetary policy. Higher yields on the twoyear UK Government bonds would also support the pair. GBPUSD is expected to rise towards 1.2920 as long as it holds above 1.2830. GBPINR is likely to consolidate in between 105.60-106.40 level.

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