Rupee appreciated marginally yesterday amid soft dollar ahead of FOMC meeting minutes - ICICI Direct
Currency Outlook:
Rupee Outlook:
• Rupee appreciated marginally yesterday amid soft dollar ahead of FOMC meeting minutes. However, dollar demand from importers, eroded the local unit's gains.
• Rupee is likely to appreciate further amid soft dollar. Dollar is moving south as investors await slew of economic data from major countries to gauge economic health and what that may mean for global interest rate outlook. Meanwhile, sharp gains may be prevented as FOMC meeting minutes signaled that most of the policymakers were concerned about the risk of cutting interest rates too soon and caution that they want to see more evidence that price pressure will continue to ease. Traders have pushed back expectations on when the Fed will begin cutting rates to June. USDINR Feb likely to slip towards 82.85 levels as long as it sustains below 83.06 level
Euro and Pound Outlook:
• Euro gained by 0.11% yesterday amid weak dollar and hawkish comments from ECB Governing Council member Wunsch. Further, rise in euro zone consumer confidence supported single currency. For today, EURUSD is likely to hold the support near 1.0790 level and rise towards 1.0840 level amid weak dollar and as ECB officials have been steadfastly pushing back against market expectation of early rate cuts. Meanwhile, sharp upside may be capped as PMI data is likely to show that activity in manufacturing and services sector continued to contract. EURINR Feb may rise towards 90.0 level as long as it trades above 89.40 levels
• Pound is expected to rise further towards 1.2670 level amid weak dollar. Meanwhile, investors will remain cautious ahead of PMI data to gauge economic health of the country and get fresh cues on interest rate outlook. GBPINR Feb is likely to move north towards 104.90 level as long as it stays above 104.40 levels
https://secure.icicidirect.com/Content/StaticData/Disclaimer.html
SEBI Registration number INZ000183631