IGI Logo

Currency Outlook

• Rupee appreciated on Friday posting its biggest single day gain in more than 8 months amid weakness in dollar and upbeat economic data from India. India’s merchandise trade deficit narrowed in November to $20.58 billion from $31.46 billion in October. Additionally, rise in risk appetite in the domestic markets and FII inflows supported domestic pair

• Rupee is likely to depreciate today amid re-bounce in dollar and risk aversion in the Asian markets. Dollar recovered after Federal Reserve bank of New York President William’s pushed back against market rate cut expectation’s. Meanwhile, sharp fall in rupee may be prevented due to persistent FII inflows and as improved trade balance data augurs well for CAD. USDINR may find support near 82.90 level and rise back towards 83.20 levels

Euro and Pound Outlook

• Euro slipped by 0.89% on Friday amid strong dollar and weaker than expected economic data from Euro Zone. Activity in Manufacturing and Services sector contracted more than expected in December. For today, EURUSD is likely to edged lower towards 1.0850 levels as long as it stays below 1.0930 levels amid re-bounce in dollar and pessimistic global market sentiments. Further, sluggish economic data from euro zone will continue to hurt single currency. EURINR may slip towards 90.30 level as long as it trades below 90.90 levels

• Pound is likely to slip towards 1.2620 level amid firm dollar, risk aversion in the global market and weaker than expected manufacturing PMI data from Britain. Activity in Manufacturing sector contracted for consecutive 17th months. GBPINR is likely to move south towards 104.80 level as long as it stays below 105.50 levels

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

SEBI Registration number INZ000183631