Waning Omicron Fears Heightened the Bearish Trend in USD/INR – Investing.com India

Waning Omicron Fears Heightened the Bearish Trend in USD/INR – Investing.com India

opened the day a lot weaker at 75.16 with an overnight loss of 7 paise/USD due to improving risk sentiment amid waning Omicron fears which heightened the bearish trend in the currency pair. We now expect the currency pair to end the calendar year at close to 75.50, while the support at 75.00 shall hold.

On the successful breach of 75.30 support level, rupee touched a high of 75.1050 today and trading with a firmer bias. From the low of 76.31 registered on 16-12-21, the rupee has recovered by close to 1.40% as the US dollar weakened globally on optimism that the fast-spread of Omicron variant of covid-19 would not derail nascent global recovery. Investors are keen to move towards riskier assets for higher returns.

The relief rally in the rupee might continue for some time as market enters into holiday mood. However, volatility cannot be ruled out on account of potential risk from the Omicron variant and fragile global cues. We strongly advise the importers to hedge their forex liabilities upto the middle of February by targeting a spot level of 75.15. After witnessing a sudden weakness in the rupee exchange rate, the importers would now feel comfortable to hedge