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Currency Outlook

Rupee Outlook

* Rupee appreciated marginally yesterday amid improved domestic market sentiments and slightly lower crude oil prices on hopes that US would ease sanctions on Venezuela

* Rupee is expected to depreciate today amid rise in US treasury yields after better than expected economic data from US. Further, rupee may slip on surge in crude oil prices and risk aversion in the global markets. Oil prices are rising on worries about supply disruption from Middle East due to deepening conflict between Hamas and Israel. Additionally, investors will remain cautious ahead of housing data from US and Fed policymakers speeches to get cues on interest rate trajectory. USDINR is likely to rise back towards 83.40 level as long as it sustains above 83.15 levels

Euro and Pound Outlook

* Euro edged recovered all its losses and closed higher on weak dollar and improved economic data from Germany. German ZEW survey expectations of economic growth rose more than expected to 6-month high in October. For today, EURUSD is likely to rise further towards 1.0620 levels as long as it remains above 1.0550 levels amid soft dollar and hawkish comments from ECB Chief economist Lane. Meanwhile, investors will remain vigilant ahead of economic data from region. EURINR may move north towards 88.30 level as long as it stays above support level of 87.80 levels

* Pound is expected to slip towards 1.2120 level as data showed wage growth in UK slowed and job vacancies also declined, boosting chances of BOE holding rates steady. Moreover, CPI data is likely to show that inflation in Britain eased in September. GBPINR is likely to slip towards 100.90 level as long as it trades below 101.70 level

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