Rupee traded in a very tight range on Monday as most investors await the annual budget announcement this week - ICICI Direct
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Currency Outlook:
Rupee Outlook:
• Rupee traded in a very tight range on Monday as most investors await the annual budget announcement this week. The rupee ended at 83.14 on Monday against its previous close at 83.12.
• Rupee is likely to remain in the range of 83.00-83.25 ahead of key events this weeks. The FOMC meeting along with annual budget would bring more clarity in the direction. Meanwhile, dip in the US treasury yields and improvement in the domestic equities would support the rupee to hold its ground. USDINR Feb is likely to consolidate in between 83.05-83.30. Only above 83.35 it would open the doors towards 83.45. On the other hand a move below 83.05 would weaken towards 82.80 mark.
Euro and Pound Outlook:
• Euro fell by 0.20% on Monday after dovish comments from the ECB members raised the speculation that the ECB will begin to cut interest rates as soon as April. EURUSD is likely to remain under pressure amid expectation of weaker GDP numbers in the Eurozone. The pair could slide further towards 1.0810, as long as it trades under 1.0880. EURINR February is most likely to move towards the lower band of the trading range of 90.00 - 90.70. Below 90.00 it would open the doors towards 89.80.
• Pound moved in a tight range on Monday as investors await key BOE policy this week.. The pair is expected to consolidate in the band of 1.2660 and 1.2750 before the outcome of the policy. Further, expectation of no rate cuts by the BOE in the first half of the year would support the pair to trade with a higher bias. GBPINR is likely to hold the support of 105.30 and move towards 106.20.
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