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Currency Outlook

Rupee Outlook

• Rupee ended flat yesterday after moving in a tight range amid rise in dollar demand from importers. Further, investors remained cautious ahead of US Durable goods orders and consumer confidence data to get cues on timing of US Fed interest rate cut

• Rupee is likely to appreciate today amid expectation of correction in dollar and US treasury yields. Dollar may slid as Conference Board’s US consumer confidence index unexpectedly declined and Durable goods order tumbled more than expected in January. Moreover, rise in risk appetite in the domestic markets along with sustained inflows would be supportive for domestic pair. However, sharp gains may be prevented amid month end dollar demand. USDINR March likely to slip towards 82.82 levels as long as it sustains below 83.05 levels

Euro and Pound Outlook

• Euro edged lower by 0.06% yesterday due to steady dollar and mixed economic data from euro zone. For today, EURUSD is likely to hold the support near 1.0810 level and rise towards 1.0870 level amid expectation of correction in dollar ahead of slew of economic data from US, which may give clues on timing and size of Federal Reserve rate cut this year. EURINR March may rise towards 90.30 level as long as it trades above 89.70 levels

• Pound is expected to rise further towards 1.2710 level amid expectation of correction in dollar and optimistic global market sentiments. Further, pound may move up on assumption that BOE will move later than US Fed and ECB in cutting rates. Meanwhile, investors will remain cautious ahead of statements from BOE officials to get fresh cues on interest rate outlook. GBPINR March is likely to move north towards 105.40 level as long as it stays above 104.80 levels

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