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Currency Outlook

Rupee Outlook

* Rupee is expected to appreciate again amid weakness in dollar. Forecast of drop in US inflation numbers to the lowestl evel since March 2021 could force the Fed to remain less hawkish.The annual core inflation in US is expected to dip towards the 5%. Further,comments from Fed officials rein forced market expectation that US  central bankis neartheend of it stightening cycle.

* US$INR is likely to slipback towards 82.30 as longasits trades under the 82.60 mark.A move below 82.30 would weaken further towards 82.10

Euro and Pound Outlook

• Euro is likely to stick to its gains amid weakness in the dollar. Further,therising10 year German bund yields could also provide enough strength to the pair to stay above 1.10 mark. EURUSD is likely to rise towards 1.1040 level as longasit stays above 1.0980. EURINR may find the support near 90.60 level and rise towards 91.20 level.

• Pound is likely to hold its gains amid a weaker dollar.The rise in wage growth in UK could force the BOE tostick to its tight monetary policy. GBPUSD is likely to move north towards 1.30 as longasit holds above 1.29. GBPINR is likely to rise towards 106.90,as longasit holds above the106.00 mark

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