IGI Logo

Currency Outlook

Rupee Outlook

• Rupee depreciated on Tuesday, amid recovery in the dollar index. The US dollar index gained by 0.31% after comments from several Fed members' dampened the speculation that the Fed was finished tightening monetary policy.

• Rupee is expected to move in tight range as weaker crude oil prices and decline in US treasury yields would overshadow the balanced comments from the Fed members. Meanwhile, investors will remain cautious ahead of Fed Chair Powell’s speech today. USDINR is likely to consolidate in between 83.10- 83.40 in the near term. Only a move below 83.10 it would open the doors towards 82.90.

Euro and Pound Outlook

• The Euro edged below the 1.07 level amid recovery in the dollar along with the weaker German Industrial production numbers. The pair is likely to face the hurdle near 1.0730 and weaken towards 1.0650 on expectation of weaker retail sales numbers from Eurozone. EURINR is likely to dip towards 88.80, as long as it trades under rise towards 89.40.

• Pound lost more than 0.25% on Tuesday amid strong dollar. However, improved housing data limited the downside in the pair. The pair is expected to move towards 1.2225 as long as it trades under 1.2350. Meanwhile, investors will remain cautious ahead of the BOE Gov. Bailey’s speech. GBPINR is expected to slide towards 102.00 as long as it trades under 102.80 levels.

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

SEBI Registration number INZ000183631