IGI Logo

Currency Outlook

Rupee Outlook

• Rupee depreciated yesterday amid strong dollar and surge in US treasury yields. Yields and Dollar moved north as US non-farm payrolls data along with comments from Federal Reserve Chair Powell prompted investors to scale back bets on aggressive rate cut. Additionally, rupee slipped on weak domestic market sentiments.

• Rupee is likely to depreciate further amid firm dollar and jump in US treasury yields after upbeat economic data from US forced investors to reevaluate timing for the first rate cut. Data showed that the US services sector growth picked up in January as new orders increased and employment rebounded. Moreover, rupee may slip on risk aversion in the global markets. USDINR Feb likely to hold the support near 82.95 levels and rise back towards 83.25 levels.

Euro and Pound Outlook

• Euro slipped by 0.41% yesterday amid strong dollar and risk-off sentiments in global markets. Further, economic concerns weighed on single currency. For today, EURUSD is likely to slip further towards 1.0690 level as long as it stays below 1.0770 levels amid firm dollar and pessimistic global market sentiments. Further, expectation of disappointing economic data from euro zone will hurt single currency. EURINR Feb may slip further towards 89.00 level as long as it trades below 89.75 levels.

• Pound is expected to slip further towards 1.2500 level amid strong dollar and risk aversion in the global markets. Meanwhile, sharp downside may be cushioned on expectation of improved economic data from country. GBPINR Feb is likely to move south towards 104.40 level as long as it stays below 105.05 levels.

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

SEBI Registration number INZ000183631