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Below is the Daily Currency Commentary 27th December 2021 by Mr. Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services

“Rupee appreciated for the whole week primarily on back of suspected RBI intervention after the Federal Reserve decided to increase its pace of tapering in its last policy meeting. The Federal Reserve doubled the pace of tapering and paved the way for three quarter-percentage-point interest rate hikes by the end of 2022 as the economy nears full employment. Last week, economic calendar was muted except the GDP numbers that were released from the US and the UK. Data showed the US economy expanded at an annual 2.3% pace in the third quarter, up from the prior estimate of 2.1%. Growth last quarter was the slowest since the second quarter of 2020, when the economy suffered a historic contraction in the wake of stringent mandatory measures to contain the first wave of coronavirus cases. Reaction on the dollar has been restricted despite better-than-expected growth number. Today as well, volatility could remain low as no major economic data is expected to be released either on the domestic or global front. We expect the USDINR(Spot) to quote with a positive bias and quote in the range of 74.80 and 75.50.”

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