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Currency Outlook:

Rupee Outlook:

• Rupee appreciated to its highest level in two weeks on Thursday amid decline in the dollar. It gained strength after the Indian Govt. lowered its FY25 gross borrowing estimates to 14.13 trillion rupees against market estimates of 15.6 trillion rupees.The rupee ended at 82.98 against its previous close at 83.04.

• Rupee is likely hold its gains amid weakness in the dollar and decline in US treasury yields. Further, forecast of increase in unemployment rate and moderation in the US job creation would hurt the dollar. Additionally, strong flow of funds to the domestic bond market and softer oil prices would also support the rupee to trade higher. USDINR Feb is likely to dip further towards 82.80, as long as it trades under 83.15.

Euro and Pound Outlook:

• Euro witnessed a sharp rebound from its 7-week low amid decline in the US dollar. Further, more than expected rise Eurozone Jan consumer prices also supported the pair to gain by 0.49%. EURUSD is likely to extend its rebound towards 1.0920 amid weakness in the dollar EURINR February is most likely to move towards 90.50, as long as it holds the key support at 89.70. Only a move above 90.50 it would rise towards 90.70.

• Pound also rebounded from day’s low amid weakness in the dollar. Further, BOE’s stance to keep interest rates higher for longer to bring back the inflation to 2% target also supported the pair to trim its earlier loses. The pair is expected to rise towards 1.28, amid softness in the dollar. On the lower end 1.270 would act as key support. GBPINR is likely to rise towards 106.10, as long as it hold above 105.20.

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