Rupee is likely to appreciate today amid soft dollar and decline in US treasury yields - ICICI Direct
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Currency Outlook
Rupee Outlook
• Rupee appreciated on Friday amid weak dollar and rise in risk appetite in the domestic markets. Meanwhile, sharp gains were limited on surge in crude oil prices and FII outflows
• Rupee is likely to appreciate today amid soft dollar and decline in US treasury yields. Dollar is expected to slip further as recent PCE-Price index data showed annual US inflation slowed further below 3% in November boosting expectation of rate cut in March. Additionally, rise in risk appetite in the domestic markets and softening of crude oil prices will aid rupee to gain strength. USDINR may slip towards 83.05 level as long as its stays below 83.30 level.
Euro and Pound Outlook
• Euro moved up by 0.03% on Friday amid weak dollar and hawkish comments from ECB policymakers. Additionally, rise in risk appetite in the global market aided euro to gain strength. For today, EURINR may rise towards 91.90 level as long as it trades above 91.40 levels. A close above 91.90 may open doors for 92.10/92.20 levels. On a flip side close below 91.40 EURINR may sink further towards 91.10/91.0 levels
• Pound edged higher on Friday amid weak dollar and optimistic global market sentiments. Further, pound moved up on improved retail sales data from Britain. UK retail sales surged 1.3% in November compared to market expectation of 0.4% rise. However, sharp upside was capped as data showed UK economy contracted by 0.1% in Q3 CY23. GBPINR is likely to move north towards 105.90 level as long as it stays above 105.30 levels.
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