- Indian Rupee (INR) falls even as Omicron fears ease
- Tax collection increased by 68%
- US Dollar (USD) recovers after steep falls
- US Fed Chair Powell to speak
The US Dollar Indian Rupee (USD/INR) exchange rate is pushing higher at the start of the week adding to gains from the previous week. The pair rallied 0.95% last week, settling on Friday at 75.04 towards the high of the week. At 10:00 UTC, USD/INR trades +0.05% at 75.08.
The Rupee traded mildly lower on Monday as domestic equities edged higher and share in Reliance jumped. The Sensex trades just 0.15% higher whilst the Nifty 50 0.16% higher at the time of writing.
Oil prices are on the rise after plunging 13% on Friday on fears that Omicron the new covid variant could spark widespread travel and mobility restrictions.
Separately net direct tax collection grew by almost 68% from April to November according to the Minister of State Finance. He added that there was no sign that tax evasion was increasing in Delhi and other parts of country.
The US Dollar is trading higher across the board on Monday. The US Dollar Index, which measures the greenback versus a basket of major currencies trades +0.09% at the time of writing at 96.17, paring some of Friday’s steep losses.
The US Dollar is rebounding at the start of the week as investors reassess the risks associated to the new covid variant discovered in South Africa, Omicron. On Friday the dollar dropped sharply as investors questioned the Fed’s ability to increase interest rates if another wave of covid strikes sparking travel and lockdown restrictions.
The World Health Organization said over the weekend that it is not yet clear if Omicron is more transmissible or more severe than other variants of COVID. However, anecdotal evidence from the doctor in South Africa who discovered is suggests that symptoms are mild, up until now.
Looking ahead there is little on the data front for investors to sink their teeth into. Attention will be firmly on a speech by Fed Chair Powell.