Rupee is likely to trade with weaker bias amid strong dollar and US treasury yields - ICICI Direct
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Currency Outlook:
Rupee Outlook:
• Rupee appreciated on Friday aided by dollar sales from foreign banks, but it ended the week on the loosing side amid moderation in US rate cut expectation and outflow from equity.
• Rupee is likely to trade with weaker bias amid strong dollar and US treasury yields. Decreasing probability of early rate cut in March by the Federal reserve would support the dollar to hold its ground. Moreover, outflow of funds from the domestic equities would check the rupee appreciation. Meanwhile, investors will remain cautious ahead of key economic numbers from US to reassess the rate cut probability in March. USDINR Jan is likely to consolidate in between 83.00-83.25. Only above 83.25 it would open the doors towards 83.40.
Euro and Pound Outlook:
• Euro traded lower on Monday amid strong dollar and negative Eurozone economic numbers. For today, EURUSD is likely to face the hurdle near 1.0910 level and slip towards 1.0850 levels amid expectation weaker consumer confidence data in the Eurozone and firmness in the dollar. Meanwhile, investors will remain cautious ahead of this weeks key ECB interest rate decision. EURINR January may dip towards 90.20, as long as it trades under 90.70.
• Pound is expected to face the resistance near 1.2740 and weaken towards 1.2660 amid strong dollar. Further, weaker retail sales numbers and expectation of contraction in the manufacturing activity could check the upside in the pair. However, reducing prospects of rate cut could limit its downside. GBPINR Jan is likely to move in the range of 105.40-106.00.
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