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Currency Outlook:

Rupee Outlook:

• Rupee appreciated marginally after oscillating in a tight range on Thursday despite weakness in the domestic equity markets and rising crude oil prices. The rupee settled at 83.1225 against 83.1375 in the previous session.

• Rupee is likely to remain under pressure amid strong dollar and higher treasury yields. Improved economic numbers from US and hawkish comments from the Fed members would force the Federal reserve to hold its rates higher for longer. Meanwhile, strong GDP forecast by RBI would limit the downside in rupee. USDINR Jan is likely to consolidate in the range of 83.00-83.25. Only close above 83.25 would open the upside in the pair towards 83.40. Likewise, a move below 83.00 would test 82.80.

Euro and Pound Outlook:

• Euro remained under pressure yesterday amid strong dollar, The pair pared its earlier gains as weaker economic numbers weighed on the Euro. However, hawkish comments from the ECB members restricted its downside. For today, EURUSD is likely to move in a tight range with a tilt towards south amid strong dollar and weak economic numbers from Eurozone. Meanwhile, investors will keep an eye on the comments from ECB president to get more clarity on interest rate path. The pair is expected to consolidate in the range of 1.0920-1.0840. EURINR Jan may face the hurdle near 90.80 and weaken towards 90.30 levels.

• Pound reversed its losses and gained more than 0.20% yesterday as higher inflation numbers in the region pushed the probability of rate cuts. The pair is expected to hold the support at 1.2640 and move back towards 1.2740. GBPINR Jan is likely to move north towards 106.00 level as long as it stays above 105.30 levels.

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