Rupee hit its all time lows last week amid strong dollar demand from domestic corporates and weaker Asian currencies - ICICI Direct
Currency Outlook
Rupee Outlook
* Rupee hit its all time lows last week amid strong dollar demand from domestic corporates and weaker Asian currencies. Further, higher crude oil prices also weighed on the Rupee to settle above 83.40.
* Rupee is expected to regain its strength amid correction in the dollar. Weaker-than expected economic numbers from US would weigh on the dollar. Meanwhile, hawkish comments from Fed members would limit the downside in the dollar. As per the CME Fed-Watch tool, rate cut probability in June has jumped to 70%. On the other hand , improved risk appetite and higher forex reserves would help the rupee to appreciate against the dollar. USDINR April is likely to face the hurdle near 83.75 and move back towards 83.35. A move below 83.35 it would slide towards 83.20.
Euro and Pound Outlook
* Euro gained more than 0.25% on Monday amid correction in the dollar. Meanwhile, gains were restricted by dovish comments from ECB Governing council member Panetta. EURUSD is likely to hold the support near 1.080 and rise back towards 1.0860, on expectation of correction in the dollar and improved risk sentiments. EURINR April is likely to find support near 90.20 and move towards 90.80. Only close below 90.20 it would test 90.00.
* Pound edged higher yesterday amid correction in the dollar. The pair is expected to find support near 1.26 and move towards 1.27 amid improved risk sentiments. Meanwhile, dovish stance from the BOE member Mann could restrict any major upside in the pair. GBPINR April is likely to find support near 105.20 and move towards 105.80. Only a move below 105.20 it would slip towards 105 level.
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