USDINR is likely to consolidate in between 83.10-83.40 - ICICI Direct
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Currency Outlook
Rupee Outlook
• Rupee remained in a tight range and settled near the 83.27 on Wednesday. The correction in crude oil prices helped the rupee to recoup its earlier losses, where as strong US dollar demand from local importers restricted its appreciation.
• Rupee is expected to appreciate amid softness in dollar and decline in US treasury yields. Further, increasing probability of Fed pause in its rate hike regime would restrict the upside in the dollar. 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. Similarly above 83.40 it would rise towards 83.50
Euro and Pound Outlook
• The Euro recovered from early losses on Wednesday after the hawkish comments from the ECB members. The expectation of higher inflation in the Euro zone may force the ECB to hold the rates higher. The pair is likely to find support near 1.0650 and move towards 1.0750. EURINR is likely to hold the support at 88.80 and bounce back towards 89.50.
• Pound recovered its earlier losses, amid retreat in the dollar. The pair is expected to find the floor near 1.2230 and move towards 1.2320 on improved risk sentiments and softness in the dollar. GBPINR is expected to hold the support near 101.90 and bounce back towards 102.40. Only close below 101.90 would weaken further towards 101.50.
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