The pair is expected to slide towards 1 .2060 as long as it trades under 1 .22 - ICICI Direct
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Currency Outlook
Rupee Outlook
* Rupee depreciated on Tuesday amid higher crude oil prices and strong dollar . The dollar index rallied to its nine month high after the US 10 -year government yields moved higher on renewed bets that interest rates in US will remain higher for longer .
* USDINR is expected to move higher towards 83 .40 on strong dollar . The hawkish comments from the Fed members would also support the dollar to hold its gains . Further, equity outflows would also weigh on the rupee . Meanwhile, investors will remain cautious ahead of key US GDP and core PCE data due later this week . USDINR is expected to move towards 83 .40 , as long as it holds above the 83 .00 . Above 83 .40 , it can test 83 .50 .
Euro and Pound Outlook
• Euro made fresh lows on Tuesday amid strong dollar and dovish comments from the ECB members . The expectation of no hike in interest rate has weighed on the pair . The Euro is likely to remain under pressure amid increasing probability of pause in the rate hike cycle by the ECB . Euro could face the resistance near 1 .0610 and weaken further towards 1 .0520 . EURINR is likely to face the hurdle near 88 .50 and weaken towards 87 .80 .
• The pound lost more than 0 .40 % yesterday amid strong dollar and sluggish growth outlook in UK . The falling expectation of rate hike in UK would weigh on the pound . The pair is expected to slide towards 1 .2060 as long as it trades under 1 .22 . GBPINR is expected to move towards 100 .70 , as long as the pair trades below 101 .80 .
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