IGI Logo

Currency Outlook

Rupee Outlook

• Rupee appreciated on Monday and hit almost the 83.00 mark amid ease in dollar and upbeat economic data from India. India’s advanced GDP numbers showed growth of 7.3% in the 2023-24 fiscal year. Additionally, weakness in crude oil prices also supported the rupee to hold its gains.

• Rupee is likely to hold its gains today amid softness in the dollar and weakness in crude oil prices. Further, strong FII inflows and improved trade balance data would support the rupee to edge higher. Meanwhile, restrictive stance by the Atlanta Fed president Bostic to hold the rates higher until the inflation dip to the 2% target would limit more downside the dollar. USDINR may face the hurdle near 83.25 and move towards the support near 82.90 level.

Euro and Pound Outlook

• Euro rose on Monday by 0.08% amid softness in the dollar and improved Eurozone economic Dec economic confidence to an 8-month high. For today, EURUSD is likely to move higher towards 1.0980 levels as long as it stays above 1.0910 levels amid softness in the dollar and forecast of improved German industrial production number. Meanwhile, investors will eye on key unemployment rate numbers from the Eurozone to get more clarity. EURINR may rise towards 91.40 level as long as it trades above 90.80 levels

• Pound is likely to extend its gain towards 1.280 level amid softness in the dollar, improved risk appetite in the global market. Meanwhile, weaker manufacturing growth and less than expected retail sales data would limit any major upside in the pair. GBPINR is likely to move north towards 106 level as long as it stays above 105.40 levels

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

SEBI Registration number INZ000183631