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Rupee Outlook:

• Rupee hit the highest level in last 4-months on Friday aided by FII inflows and strong economic data. Further persistent intervention from RBI also helped the rupee to appreciate past 83.00.

• Rupee is likely to trade with positive bias amid expectation of correction in dollar and US treasury yields. Yield is likely to move south as softness in the US PPI numbers and mixed batch of recent economic data raised the expectations that US Fed may start cutting rates this year as soon a March. Meanwhile, rise in retail inflation numbers to its highest level in four months would support the hawkish signal from RBI. Additionally, expectation of better trade balance numbers in Dec would also strengthen the rupee. USDINR Jan will face hurdle near 83.15 levels and slip back towards 82.80levels.

Euro and Pound Outlook:

Euro slipped marginally by 0.21% on Friday amid weakness in the treasury yields and weaker economic numbers from the Eurozone. For today, EURUSD is likely to hold the support near 1.0920 level and rise towards 1.0990 levels amid expectation of correction in dollar and improved trade balance numbers from the regions. Further, investors will keep an eye on outcome from the Eurogroup meeting outcome and industrial production numbers from the region. EURINR Jan may rise towards 91.25 level as long as it trades above 90.70 levels.

• Pound edged lower despite an improved GDP numbers last month. Improved industrial production numbers and trade balance data has supported the pair to trim its earlier losses. The pair is expected to find support near 1.2700 and rise back towards 1.2780 on expectation of weakness in the dollar . GBPINR Jan is likely to move north towards 106.10 level as long as it stays above 105.50 levels.

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