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Currency Outlook

Rupee Outlook

• Rupee appreciated yesterday due to weakness in dollar and rise in risk appetite in the domestic markets. Meanwhile, investors remained vigilant ahead of testimony from Federal Reserve Chair Jerome Powell before US lawmakers.

• Rupee is likely to appreciate today amid weak dollar and softening of US treasury yields. Dollar is moving south as US Fed Chair Powell said rate cuts will likely be appropriate later this year if economy evolves broadly as expected. Additionally, data pointed an easing of labor market conditions. ADP employment report showed companies hired fewer workers than expected. Moreover, FII inflows will aid rupee to gain further strength. USDINR March likely to slip towards 82.80 levels as long as it sustains below 82.95 levels

Euro and Pound Outlook

• Euro edged higher by 0.39% yesterday amid weak dollar and better than expected German trade data. For today, EURUSD is likely to hold the support near 1.0860 level and rise towards 1.0930 level amid soft dollar and optimistic global market sentiments. Additionally, investors will keep an eye on ECB monetary policy, where central bank is likely to hold rates at record high. More focus will be on statements from ECB to get fresh cues about when rate cuts may begin. EURINR March may rise towards 90.50 level as long as it trades above 90.00 levels

• Pound is expected to rise further towards 1.2770 level amid soft dollar and rise in risk appetite in the global markets. Further, sterling may move up as Finance Minister Jeremy Hunt offered no surprises in his statement, budget was much in line with market expectations. GBPINR March is likely to move north towards 105.60 level as long as it stays above 105.20 levels

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