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Currency Outlook

Rupee Outlook

• Rupee ended flat yesterday amid weak domestic markets sentiments and FII outflows . Further, rupee recorded its 4 th consecutive monthly decline in October

• Rupee is expected to depreciate today amid firm dollar, rise in US treasury yields and FII outflows . Further, rupee may skid on weak global market sentiments and rising geopolitical tension in Middle East . Additionally, investors will remain cautious ahead of US Fed monetary policy meeting, where central bank is likely to keep its rate steady again ; more focus will be on statements from central bank to get more clarity on interest rate outlook . USDINR is likely to rise towards 83 .40 level as long as it sustains above 83 .25 levels

Euro and Pound Outlook

• Euro edged lower on Tuesday amid strong dollar, decline in Euro Zone yields and weaker than expected economic data from Euro Area . Eurozone October CPI eased to 2 . 9 % y/y from 4 . 3 % y/y in September and Eurozone Q 3 GDP fell - 0 . 1 % q/q . For today, EURUSD is likely to slip further towards 1 .0520 levels as long as it remains below 1 .0600 level amid firm dollar and dovish comments from ECB policymakers . Further, fresh economic data from eurozone are dovish for ECB policy . EURINR Nov may move south towards 87 .70 level as long as it stays below 88 .60 levels

• Pound is expected to dive towards 1 .2080 level amid firm dollar and weak global market sentiments . Further, BOE is expected to keep interest rates unchanged at 15 -year high of 5 .25 % . GBPINR is likely to edged lower towards 100 .80 as long as it trades below 101 .60 level .

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