Indian Rupee: Likely To Stay Supported

10 Jan 2022 , 09:16 AM

Sustained foreign fund inflows and easing crude oil prices are likely to keep the Indian rupee supported in opening trades on Monday, 10 January 2022. However, rebounding dollar overseas and Omicron worries could restrict gains in the local unit.

On Friday, rupee gained 12 paise to close at 74.30 against the US dollar on Friday. At the interbank forex market, the local unit opened at 74.41 against the greenback and witnessed an intra-day high of 74.25 and finally ended the day at 74.30, registering a gain of 12 paise from its previous close of 74.42.

Domestic benchmark indices settled with decent gains on Friday, supported by oil & gas and banks stocks. The barometer index, the S&P BSE Sensex, rose 142.81 points or 0.24% at 59,744.65. The Nifty 50 index gained 66.80 points or 0.38% at 17,812.70. Foreign portfolio investors (FPIs) bought shares worth Rs 496.27 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 115.66 crore in the Indian equity market on 7 January, provisional data showed.

Overseas, Asian stocks are trading mixed on Monday as investors kept an eye on the coronavirus pandemic and rising interest rates in the U.S. Japans markets are closed for a public holiday. Covid cases have continued to rise sharply around the globe following the emergence of the highly transmissible omicron variant.

US stocks ended lower Friday as investors worried about looming U.S. interest-rate hikes and unfolding Omicron news. On Friday, the Labor Department reported the U.S. economy added far fewer jobs in December than expected. The nonfarm payrolls report showed an increase of 199,000 in December. The U.S. unemployment rate fell to 3.9% in December from 4.2% in November, the jobs report showed.

Meanwhile, the dollar formed up in early Asia on Monday, recouping from Fridays losses on the back of U.S. jobs report that missed expectations. The Labor Department said nonfarm payrolls rose by 199,000 last month, well short of the 400,000 estimate. The dollar index, that measures the greenback against a basket of currencies is at 95.90.

Powered by Commodity Insights