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14-03-2024 09:24 AM | Source: ICICI Direct
Euro edged higher yesterday amid softness in the US dollar - ICICI Direct
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Currency Outlook

Rupee Outlook

• Rupee depreciated against the dollar yesterday amid weakness in the domestic equities. Further higher US treasury yields due to sticky US inflation numbers also supported the USDINR pair to recover from its 6- month lows.

• Rupee is likely to move in a tight range of 82.75-83.00 ahead of the key economic numbers from US. The pair could rise towards the higher band amid diminishing probability of early rate cut. Forecast of improved retail sales numbers and rise in PPI numbers would support the dollar to edge higher. Meanwhile, strong inflows into the domestic markets could favor the rupee to trim its losses. USDINR March likely to consolidate in the band of 82.75-83.00. Only close above 83.00 it would test 83.10.

 

Euro and Pound Outlook

• Euro edged higher yesterday amid softness in the US dollar. The pair recovered from its days lows despite weaker Eurozone industrial production data. For today, EURUSD is likely remain in the range of 1.0980 and 1.0920 as most investors awaited further clarity on timing of interest rate cut. Meanwhile, increasing probability of 25 bps rate cut would check its upside. EURINR March may face the hurdle at 90.80 level and slide towards 90.40 levels

• Pound recovered its earlier losses after GDP in the region rebounded by 0.2% last month. But the weaker industrial production numbers restricted its upside. The pair is likely to face stiff resistance near 1.2830 amid expectation of weak economic numbers. GBPINR March is likely to move south towards 105.80 level as long as it stays below 106.25 levels

 

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