IGI Logo

Currency Outlook

Rupee Outlook

• Rupee depreciated marginally yesterday amid surge in crude oil prices and risk aversion in the domestic markets. Meanwhile, likely US dollar sale by central bank kept rupee off its record low

• Rupee is expected to depreciate today amid strong dollar and rise in US treasury yields. Yields are rising on growing hopes that US Fed will keep rate higher for longer duration. Further, rupee may slip on surge in crude oil prices and pessimistic global market sentiments. Additionally, investors will remain cautious ahead of US Fed Chair Powell speech to get cues on interest rate outlook and war between Hamas and Israel for signs of escalation. USDINR is likely to rise back towards 83.40 level as long as it sustains above 83.20 levels 

Euro and Pound Outlook

• Euro slipped yesterday amid strong dollar and risk aversion in the global markets. Further, dovish comments from ECB Governing Council member Stournaras weighed on single currency. For today, EURUSD is likely to slip further towards 1.0480 levels as long as it remains below 1.0550 levels amid strong dollar and weak global market sentiments. Meanwhile, investors will remain vigilant ahead of US economic data and speeches from US Fed officials to get clarity on interest rate outlook. EURINR may move south towards 87.55 level as long as it stays below 88.15 levels

• Pound is expected to slip towards 1.2070 level amid strong dollar and risk aversion in the global markets. However, data showed UK inflation held steady in September, though above expectations. GBPINR is likely to slip towards 100.90 level as long as it trades below 101.60 level.

Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html

SEBI Registration number INZ000183631