Rupee is likely to depreciate today amid firm dollar and rise in US treasury yields - ICICI Direct
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Currency Outlook
Rupee Outlook
• Rupee on Friday hovered in a tight range and ended little changed as dollar demand from importers worn the impact of supportive global cues.
• Rupee is likely to depreciate today amid firm dollar and rise in US treasury yields. Dollar is moving north as hotter than expected CPI and PPI data last week from US scaled back market expectations of early rate cut by US Fed. Moreover, investors now expects around 90bps rate cut this year, down sharply from 160 bps at the end of last year. Additionally, risk aversion in the global markets and surge in crude oil prices may hurt rupee. USDINR Feb likely to rise towards 83.15 levels as long as it sustains above 82.90 levels
Euro and Pound Outlook
• Euro gained by 0.02% yesterday as hawkish comments from ECB official continued to support single currency. For today, EURUSD is likely to face the hurdle near 1.0790 level and slip further towards 1.0720 level amid strong dollar and pessimistic global market sentiments. Further, economic concerns would weigh on single currency. EURINR Feb may slip towards 88.90 level as long as it trades below 89.70 levels
• Pound is expected to slip further towards 1.2530 level amid firm dollar and risk aversion in the global markets. Further, disappointing economic data from Britain has raised the concern over economic health of the country. Meanwhile, investors will remain cautious ahead of Monetary policy report hearings to get fresh cues on interest rate outlook. GBPINR Feb is likely to move south towards 104.10 level as long as it stays below 104.70 levels
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