Euro slipped by 0.89% yesterday amid strong dollar and risk aversion in the global markets - ICICI Direct
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Currency Outlook
Rupee Outlook
• Rupee depreciated yesterday amid recovery in dollar, weak domestic market sentiments and dollar demand from importers.
• Rupee is likely to trade with negative bias amid rebound in dollar and risk aversion in the global markets. Dollar recovered as escalation of geopolitical tension in Middle East boosted safe haven demand. Meanwhile, investors will remain cautious ahead of FOMC meeting minutes and slew of economic data from US to get further insight on interest rate outlook. US ISM Manufacturing pmi data is likely to show that activity contracted for 14th consecutive month. Additionally, decline in crude oil prices may provide some aid to domestic currency. USDINR Jan will rise towards 83.46 levels as long as it stays above 83.30 levels
Euro and Pound Outlook
• Euro slipped by 0.89% yesterday amid strong dollar and risk aversion in the global markets. Further, economic concerns weighed on single currency. Data showed manufacturing activity in euro zone contracted for 18th consecutive month. For today, EURUSD is likely to slip further towards 1.0900 levels amid strong dollar and pessimistic global market sentiments. EURINR Jan may slip towards 91.20 level as long as it trades below 91.80 levels.
• Pound is expected to decline further towards 1.2550 levels on strong dollar and risk aversion in the global markets. Further, data showed UK Manufacturing PMI suffered setback in its attempt to return to growth. GBPINR Jan is likely to move south towards 105.20 level as long as it stays below 106.00 levels.
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