Rupee is expected to depreciate today amid re-bounce in dollar - ICICI Direct
Currency Outlook
Rupee Outlook
* Rupee depreciated on Monday amid elevated US treasury yields and weak global market sentiments. Further, rupee tracked weakness in other Asian currencies
* Rupee is expected to depreciate today amid re-bounce in dollar. Dollar moved higher as fresh economic data from US showed resilience in economy. US business output ticked higher in October as manufacturing sector pulled out of 5-month contraction. However, sharp fall may be prevented on softening of crude oil prices and improved Asian market sentiments after China’s top parliament approved 1-trillion yuan bond issue. USDINR is likely to rise back towards 83.25 level as long as it sustains above 83.00 levels
Euro and Pound Outlook
* Euro edged lower yesterday due to re-bounce in dollar and disappointing economic data from euro zone. Further, dovish comments from ECB President Lagarde hurt single currency. For today, EURUSD is likely to slip further towards 1.0540 levels as long as it remains below 1.0640 levels amid strong dollar and as weaker than expected economic data from euro zone raised concerns over economic health. Additionally, ECB President Lagarde said Eurozone economy faces stagnation for next few quarter. EURINR may move south towards 87.70 level as long as it stays below 88.30 levels
* Pound is expected to dive towards 1.2100 level amid strong dollar and weaker than expected economic data from Britain. Data showed UK labor market lost more steam and Business activity continued to deteriorate. GBPINR is likely to edged lower towards 100.50 level as long as it trades below 101.20 level.
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