Rupee strengthened on Wednesday amid softness in the dollar - ICICI Direct
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Currency Outlook
Rupee Outlook
• Rupee strengthened on Wednesday, amid softness in the dollar. Decline in the key US CPI numbers has increased the bets that the Fed will cut the rates by May next year
• Rupee is expected to appreciate towards the 83.00 mark amid correction in the dollar. The cooling US CPI and PPI numbers has raised the bets that the Fed has done with the rate hike cycle. Further, weakness in the crude oil prices and increasing probability of interest rate cut in May next year would also weigh on the dollar. USDINR is likely to move back towards 83.00 mark, as long as it stays under 83.30 . Only move below 83.00 it would open the doors towards 82.80.
Euro and Pound Outlook
• The Euro took a pause in its rally amid weaker economic numbers from the Euro zone. The Eurozone industrial production numbers fell more than expected. The pair is likely to find support near 1.080 and move higher towards 1.0880 amid softness in the dollar. Meanwhile, traders will eye on comments from the ECB President to get more clarity on the future rate path. EURINR is likely to find the floor near 89.80 and move higher towards 90.60.
• Pound lost more than 0.50% after a sharp rally amid recovery in the dollar. The pair is expected to rise towards 1.2450 as long as it holds above 1.2330. GBPINR is expected to hold 102.80 and move higher towards 103.50. Only close above 103.50 it would open the doors towards 104.00.
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