• Indian Rupee (INR) strengthens for a fourth straight day
  • Domestic equities rally & oil rises
  • US Dollar (USD) edges higher versus major peers
  • US GDP data due tomorrow

The US Dollar Indian Rupee (USD/INR) exchange rate is moving lower for a fourth straight day. The pair settled -0.35% on Monday at 75.72. At 15:30 UTC, USD/INR trades -0.05% at 75.68.

The Indian Rupee is rising as risk sentiment improves. Risker assets are rising across the globe, even as Omicron fears linger.

Indian domestic equities closed higher on Tuesday after falling over 3% in the previous session. A jump in technology stocks and metal stocks lifted the index, although fears over surging Omicron are keeping gains capped.

India has warned state governments to be high alert as the number of cases of Omicron nearly doubled within a week in over 10 states. States are permitted to impose restrictions if new infections reached 10% higher over 7 days.

Separately the price of oil is on the rise after falling steeply across the last few sessions. West Texas Intermediate  trades 3.4% higher which is limiting the gains in the Rupee.

The US Dollar is trading lower versus the Indian Rupee but is gaining against its major peers. The US Dollar Index, which measures the greenback versus a basket of major currencies trades +0.03% at the time of writing at 96.56 after a flat finish in the previous session.

The US Dollar continues to trade in a familiar range around a 16-month high after the Federal Reserve accelerated the pace at which it is tapering its bond purchases and set out for three interest rate hikes across 2022.

Yesterday the greenback recovered from session lows after President Biden’s $1.75 trillion spending bill failed in the Senate. US Senator Joe Manchin who was key to passing the plan said on Sunday that he wouldn’t support it on inflation concerns.

Looking ahead there is no high impacting US data due to be released today. Investors will look ahead to tomorrow which sees the release of US third quarter GDP, consumer confidence and existing home sales.