IGI Logo

Currency Outlook

Rupee Outlook

* Rupee closed slightly lower on Friday after Reserve bank of India kept policy rate unchanged in line with market expectations. Further, investors remained cautious ahead of crucial labour market report from US to get cues on interest rate outlook

* Rupee is likely to depreciate today due to rise in dollar and US treasury yields. Dollar and yields jumped after data showed employers added more jobs than expected in November, forcing traders to pare back expectations that Fed could cut rates as soon as March. Additionally, recovery in Crude oil prices and weak domestic market sentiments may hurt domestic currency. USDINR may rise towards 83.50 level as long as its stays above 83.35 levels

EURINR vs. GBPINR

Euro and Pound Outlook

* Euro edged lower by 0.32% on Friday amid strong dollar. Meanwhile, sharp downside was cushioned on optimistic domestic market sentiments. For today, EURUSD is likely to slip further towards 1.0700 levels as long as it stays below 1.0800 levels majorly on the back of strong dollar. Meanwhile, sharp downside may be cushioned as traders even pared back expectations that ECB could cut rates at March meeting. EURINR may slip towards 89.60 level as long as it trades below 90.20 levels

* Pound is likely to slip towards 1.2500 levels amid strong dollar and disappointing economic data from Britain. Meanwhile, sharp downside may be cushioned on hopes that BOE will keep rates higher for longer compared to peers, given stubbornly high inflation. GBPINR is likely to move lower towards 104.50 level as long as it stays below 105.10 levels

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

SEBI Registration number INZ000183631