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Currency Outlook

Rupee Outlook

• Rupee depreciated on Friday amid dollar demand from importers. Meanwhile, sharp fall was prevented due to foreign fund inflows into the share and bond markets and softening of crude oil prices

• Rupee is likely to depreciate today amid firm dollar. Dollar is moving north as most of the Fed officials comments signaled that central bank would take its time in cutting interest rates to make sure inflation eases to its target. Additionally, investors have pushed back expectations for the first Fed rate cut to June from May. Meanwhile, persistent FII inflows and softening of crude oil prices may prevent sharp fall in rupee. USDINR Feb likely to rise back towards 83.05 levels as long as it sustains above 82.85 level.

Euro and Pound Outlook

• Euro slipped by 0.05% on Friday amid recovery in dollar and dovish comments from ECB Governing Council member Centeno. Meanwhile, sharp downside was cushioned as survey showed German business morale improved in February. For today, EURUSD is likely to face hurdle near 1.0850 level and slip back towards 1.0760 level amid firm dollar and pessimistic global market sentiments. EURINR Feb may slip towards 89.40 level as long as it trades below 90.0 levels

• Pound is expected to slip further towards 1.2610 level amid risk aversion in the global markets and strong dollar. Meanwhile, investors will remain cautious ahead of economic data and comments from BOE policymaker to get fresh cues on interest rate outlook. GBPINR Feb is likely to move south towards 104.60 level as long as it stays below 105.05 levels

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