IGI Logo

Currency Outlook:

Rupee Outlook:

• Rupee ended little changed yesterday after Reserve Bank of India kept its monetary policy unchanged. While, investors remained cautious ahead of initial jobless claim data from US and remarks from Richmond Fed President Thomas Barkin to get cues on policy rate path.

• Rupee is likely to depreciate today amid firm dollar and rise in US treasury yields. Dollar is moving north as job data pointed to a resilient US labor market, reinforcing expectations that US Fed is unlikely to cut rates in the near term. Additionally, comments from Fed officials have been supportive for dollar so far. Moreover, traders will remain cautious ahead of key inflation data from US scheduled next week to get cues on policy rate path. USDINR Feb likely to rise towards 83.15 levels as long as it sustains above 82.85 levels

Euro and Pound Outlook:

• Euro rose by 0.05% yesterday on hawkish statement from ECB official. ECB Governing Council member Wunsch and ECB Chief Economist Lane said they favor waiting for more data before deciding to cut interest rates. For today, EURUSD is likely to face hurdle near 1.0800 level and slip back towards 1.0740 level amid firm dollar and pessimistic global market sentiments. Meanwhile, investors remain cautious ahead of data from euro zone to gauge economic health. EURINR Feb may slip further towards 89.30 level as long as it trades below 89.80 levels

• Pound is expected to slip towards 1.2570 level amid strong dollar and risk aversion in the global markets. Meanwhile, sharp downside may be cushioned as policymakers continued to push back against expectations for early rate cuts. GBPINR Feb is likely to move south towards 104.50 level as long as it stays below 105.05 levels

Please refer disclaimer athttps://secure.icicidirect.com/Content/StaticData/Disclaimer.html

SEBI Registration number INZ000183631