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Currency Outlook:

Rupee Outlook:

• Rupee remained in a tight range ahead of major economic data from US to gauge health of the economy and get fresh cues on interest rate outlook. Further, rupee tracked subdued moves in most Asian currencies

• Rupee is likely to appreciate today amid soft dollar, decline in US treasury yields and optimistic global market sentiments. Dollar slipped after mixed batch of economic data from US, with retail sales falling more than expected in January. Moreover, investors will remain cautious ahead of PPI data, softer read would weigh on dollar. Additionally, India's merchandise trade deficit in January narrowed to $17.49 billion, down from $19.8 billion in December. USDINR Feb likely to slip towards 82.90 levels as long as it sustains below 83.15 levels

Euro and Pound Outlook:

• Euro gained by 0.42% yesterday amid soft dollar and positive global market sentiments. Additionally, hawkish comments from ECB President Lagarde supported single currency. She cautioned against the ECB rushing into interest rate cuts. For today, EURUSD is likely to hold the support near 1.0740 level and rise towards 1.0810 level amid weakness in dollar and rise in risk appetite in the global markets. Further, hawkish comments from ECB officials will continue to support single currency. EURINR Feb may rise towards 89.70 level as long as it trades above 89.20 levels.

• Pound is expected to slip further towards 1.2530 level as data showed UK economy contracted by 0.3% in Q4 CY23, shrinking for second consecutive quarter. Meanwhile, investors will remain cautious ahead of retail sales data from Britain to get more cues on interest rate outlook. GBPINR Feb is likely to move south towards 104.0 level as long as it stays below 104.60 levels

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