• Indian Rupee (INR) falls in risk off trade in Asia
  • RBI interest rate decision due on Wednesday
  • US Dollar (USD) rises after mixed non-farm payroll on Friday
  • Omicron fears ease slightly lifting USD.

The US Dollar Indian Rupee (USD/INR) exchange rate is pushing higher on Monday adding to gains from the previous week. The pair gained +0.25% across last week and settled on Friday at 75.22. At 10:00 UTC, USD/INR trades +0.20% at 75.35.

The Indian Rupee is falling amid weakness in Asian markets. China’s second largest property company Evergrande is once again teetering on the brink of default. The property developer warned that it may soon not be able to perform its financial obligations owing to a $310 billion dent pile. The news dragged riskier assets lower across Asia.

The Reserve Bank of India is due to make its monetary policy announcement on Wednesday. The central bank is expected to keep interest rates unchanged. Retail inflation has remained within the central bank’s 2%-6% target range since July.

The US Dollar is trading higher across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies trades +0.14% at the time of writing at 96.25, adding to mild gains from the previous week.

The US Dollar rose on Friday despite a mixed non-farm payroll report. The closely watched jobs data showed that just 210,000 jobs were added in November, half of the 550,000 expected. However, the unemployment rate dropped by more than expected to 4.2%, down from 4.6%.

The US dollar is moving higher today as the mood in the market improves. US medical advisor Anthony Fauci noted that the new Omicron COVID strain, doesn’t appear to me more dangerous. He said “there didn’t seem to be a great degree of severity to Omicron. However, he also cautioned that it was still early days.

The slight easing in covid fears has sparked bets that the Federal Reserve will press ahead with tightening monetary policy, despite Omicron uncertainties.

There is no high impacting US data due today.