IGI Logo

Currency Outlook

Rupee Outlook

• Rupee appreciated on Friday aided by FII inflows and positive domestic market sentiments. Meanwhile, sharp gains were limited due to rise in crude oil prices.

• Rupee is likely to trade with positive bias amid expectation of further correction in dollar and US treasury yields. Yield is likely to move south as mixed batch of recent economic data signaled weakness in economy, reinforcing expectations that US Fed may start cutting rates this year as soon a March. Moreover, optimistic domestic market sentiments and persistent FII inflows would aid rupee. Meanwhile, investors will remain cautious ahead of speeches form Fed officials to get hint on timing of rate cut. USDINR Jan will face hurdle near 83.35 levels and slip back towards 83.15 levels.

Euro and Pound Outlook

• Euro slipped marginally by 0.03% on Friday amid strong dollar and negative domestic markets. For today, EURUSD is likely to hold the support near 1.0910 level and rise towards 1.100 levels amid expectation of correction in dollar and optimistic global market sentiments. Additionally, recent CPI data from euro zone showed inflation accelerated in December, reducing expectation of rate cut from ECB. EURINR Jan may rise towards 91.50 level as long as it trades above 90.80 levels.

• Pound is expected to rise further towards 1.2770 levels on weak dollar and as various data from Britain showed economy was more resilient than feared in December. Supporting Pound, traders are cutting back expectations of Bank of England rate cuts this year. GBPINR Jan is likely to move north towards 106.40 level as long as it stays above 105.50 levels.

Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html

SEBI Registration number INZ000183631