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Currency Outlook

Rupee Outlook

* Rupee depreciated marginally on Friday amid firm dollar and rise in US treasury yields. Further, rupee slipped on surge in crude oil prices and weak domestic market sentiments

* Rupee is likely to depreciate today amid strong dollar and rise in US treasury yields. Dollar is moving north as recent data showed no signs of easing price pressure, reinforcing expectations that US Federal Reserve will delay its first interest rate cut. US Core-PCE price index rose 2.8% in March higher than the estimate of 2.6%. Meanwhile, sharp fall in rupee may be prevented on softening of crude oil prices and rise in risk appetite in the domestic markets. USDINR May likely to find support near 83.30 level (50-Day EMA) and rise towards 83.50 levels. A sustain break above 83.50 level pair may further rise towards 83.60 levels

Euro and Pound Outlook

* Euro slipped by 0.36% on Friday amid strong dollar. Further, data showed Eurozone M3 money supply rose more than expected in March. For today, EURUSD is likely to face the resistance near 1.0740 level and slip towards 1.0670 level amid strong dollar. Further, euro may slip on divergence in monetary policy between US Fed and ECB. US Fed is likely to delay its rate cut as recent batch of economic data showed economic growth slowed down unexpectedly, while inflation remained elevated. Meanwhile, investors will keep an close on data from euro zone to gauge economic health of the region. EURINR May is likely to slip towards 89.20 levels as long as it trades below 89.65 levels.

* Pound is expected to face resistance near 1.2540 level and slip back towards 1.2470 level (10-Day EMA) amid strong dollar. GBPINR May is likely to move south towards 104.20 level as long as it stays below 104.75 levels (100-Day EMA).

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