Indian Rupee: Soaring Covid Cases Count In Focus

14 Jan 2022 , 09:10 AM

The Indian Rupee stayed supported, holding onto the recent gains amid sliding US dollar and firm local equities. INR closed at 73.89 per US dollar today, up 3 paise on the day and holding around a multi month high. The benchmark NIFTY50 equity index hit around two and half month high, keeping INR supported. Benchmark indices ended with small gains on Thursday and extended their winning run to fifth consecutive trading session. The Nifty managed to end above the 18,250 level. Metal, pharmaceutical and auto stocks saw demand while realty, banking and financial shares corrected. INR has been supported in last few days as markets are hopeful of a revival in overseas investments as December quarter earnings get underway. Meanwhile, the US Dollar Index broke under 95 mark, extending recent losses as ambiguity around the US monetary policy direction grew. Dollar index tanked after ECB said today that Eurozone growth is expected to rebound strongly over the course of 2022. Soaring Covid cases in India could weigh on INR in near term. Fresh Covid-19 cases in India rose 7% on day to nearly 2.64 lakh yesterday.

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