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Below is quote on Rupee 28 December 2021 By Ms. Sugandha Sachdeva, Vice President - Commodity and Currency Research , Religare Broking Ltd

We have seen a sharp rebound in the Indian rupee from the key support of the 76.50 mark, owing to the fact that the dollar index has been kind of subdued, and risk on sentiments have returned to the market. As of now, even though infection cases are rising, concerns about this new Omicron Covid variant have kind of receded as it is not likely to have a major impact on global growth. Along with this, renewed buying in global equities in holiday-thinned trading has aided domestic markets and has been a major catalyst for strong gains in the rupee. Continuous dollar sales from foreign banks on behalf of exporter clients have also aided the move in the local currency. However, the 74.50 mark will act as strong near-term resistance and unless that level is breached, we are not looking at further gains for the local unit in the near-term. Crude oil prices have again risen after a brief phase of correction leading to worries about the rising current account deficit in this financial year. Even the central bank seems to have intervened in the 76.00-76.50 zone to curb excessive depreciation, anchoring the Indian rupee on a recovery path.

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