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Rupee Outlook

• Rupee depreciated marginally on Friday on the back of strong dollar and surge in crude oil prices. Further, rupee slipped on weak global market sentiments

• Rupee is expected to depreciate today amid firm dollar and rise in crude oil prices. Oil prices are rising on fear that conflict in Middle east could widen and US tightened its sanctions against Russian crude exports when there is already a concern over tight market. Further, risk sentiments remained fragile amid ongoing tension in Middle East. Meanwhile, India's merchandise trade deficit for September came in lower than expected at $19.37 billion against expectations of $23.25 billion. USDINR is likely to rise back towards 83.40 level as long as it sustains above 83.20 levels

Euro and Pound Outlook

• Euro edged lower on Friday amid strong dollar and risk aversion in the global markets. Further, pair slipped after comments from ECB President Lagarde signaled that additional rate hikes may be on hold. For today, EURUSD is likely to slip further towards 1.0450 levels as long as it remains below 1.0550 levels amid firm dollar and weak global market sentiments. Additionally, investors will remain cautious ahead of data from Eurozone to gauge the economic health. EURINR may move south towards 87.50 level as long as it stays below resistance level of 88.10 levels

• Pound is expected to slip towards 1.2100 level amid strong dollar. Further, money markets currently show traders believe UK rates are very close to peaking. Moreover, investors will remain cautious ahead of MPC member comments to get clues on rate outlook. GBPINR is likely to slip towards 101.35 level as long as it trades below 101.85 level. 

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