inr-bank-notes - INR
  • Indian Rupee (INR) rises, tracing domestic equities higher
  • Omicron cases identified in India
  • US Dollar (USD) rises after jobless claims beat
  • US non-farm payrolls due tomorrow

The US Dollar Indian Rupee (USD/INR) exchange rate is falling on Thursday extending losses from the previous session. The pair settled -0.09% on Tuesday at 75.02. At 17:00 UTC, USD/INR trades -0.16% at 74.90.

The Rupee was on the rise despite reporting its first two case of Omicron. The government said there were no immediate plans to authorize booster vaccine shots. Omicron is rapidly spreading across the globe. However, there still many unknowns about the new COVID strain, including how severe it is.

Separately, the Rupee traced domestic equities higher, as shares closed at a one week high. The Nifty 50 closed 1.4% higher, whilst the Sensex close 1.3% higher.

Oil prices rose despite OPEC+ saying that they will press ahead with its planned oil output increase of 400,000 barrels per day. There had been doubts whether they would proceed given the uncertainty surrounding the demand outlook with Omicron.

The US Dollar is trading lower versus the Rupee but is moving higher versus its major peers. The US Dollar Index, which measures the greenback versus a basket of major currencies trades +0.06% at the time of writing at 96.07.

The US Dollar is pushing higher on Friday boosted by better-than-expected jobless claims. US jobless claims rose to 222k last week, which was up from the 194k the previous week, the lowest level since 1969. However it was still less than the 240k forecast and is consistent with how the jobs market looked pre-covid.

Data is drawing a picture of a tighter labour market as workers are leaving position and taking up new positions at the highest level on record.

The data bodes well for the non-farm payroll which is due tomorrow. Analysts expect 573,000 new jobs to be added in November, after a gain of 531,000 in October. The unemployment rate is expected to tick lower to 4.5%