IGI Logo

Currency Outlook

Rupee Outlook

• Rupee appreciated on Thursday amid weakness in dollar and decline in US treasury yields. Meanwhile, investors remained cautious ahead of US jobless claims data due later on Thursday and the non-farm payrolls report on Friday.

• Rupee is likely to appreciate today further amid soft dollar and US treasury yields. Dollar is moving south as rise in US unemployment rate and moderation in wage gains boosted expectations that Fed could start cutting rates soon. Additionally, US Non-Farm payrolls increased by 275K jobs last month but data for January was revised down to show 229K jobs created instead of 353K as previously reported. USDINR March likely to slip towards 82.60 levels as long as it sustains below 82.85 levels 3 EURINR vs. GBPINR Dollar Index vs. US$INR Rupee Outlook Euro

Euro and Pound Outlook

• Euro edged lower by 0.09% on Friday amid dovish comments from ECB Governing Council members Nagel and Villeroy de Galhau, they said ECB could begin cutting interest rates in the spring. For today, EURUSD is likely to hold the support near 1.0910 level and rise towards 1.0980 level amid soft dollar. Further, ECB had kept rates at record highs of 4.00% in its recent policy meeting and dampened expectations of imminent ECB rate cuts. EURINR March may rise towards 90.90 level as long as it trades above 90.30 levels

• Pound is expected to rise further towards 1.2900 level amid soft dollar and as Finance Minister Jeremy Hunt offered a raft of tax cuts, but little in the way of surprise for market. Additionally, BOE is expected to lag US Fed and ECB when it comes to rate cuts. GBPINR March is likely to move north towards 106.50 level as long as it stays above 105.90 levels.

https://secure.icicidirect.com/Content/StaticData/Disclaimer.html

SEBI Registration number INZ000183631