Rupee appreciated on Wednesday slightly as the RBI likely sold dollars to prevent slide in the rupee - ICICI Direct
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Currency Outlook
Rupee Outlook
• Rupee appreciated on Wednesday slightly as the RBI likely sold dollars to prevent slide in the rupee. The rupee managed to settle at 83.23 despite firm dollar and higher crude oil price.
• USDINR is expected to move higher towards 83.40 on strong dollar and higher crude oil prices. The rising US government yields is going to hurt the rupee. Further expectation of better GDP numbers from US would also support the dollar to trade firm. Meanwhile, investors will remain cautious ahead of the Fed chair’s speech due later in the day. USDINR is expected to move towards 83.40, as long as it h olds above the 83.00. Above 83.40, it can test 83.50.
Euro and Pound Outlook
• Euro lost more than 0.50% yesterday amid strong dollar and weak economic numbers from the Eurozone. The projection of contraction in the German GDP could be bearish for the pair. Further, expectation of softness in German prelim CPI could also check the upside in the pair. Euro could face the resistance near 1.0570 and weaken further towards 1.048. EURINR is likely to face the hurdle near 88.40 and weaken towards 87.50.
• The pound hit fresh multi month lows amid strong dollar. The sluggish growth outlook and falling expectation of rate hike in UK would weigh on the pound. The pair is expected to slide towards 1.2080 as long as it trades under 1.22. GBPINR is expected to move towards 100.80, as long as the pair trades below 101.60.
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