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Below is quote on Rupee 15 December 2021 By Ms. Sugandha Sachdeva, Vice President - Commodity and Currency Research , Religare Broking Ltd

The Indian rupee  has drifted towards  a 16-month low, even breaching the key 76 mark amid a hawkish tilt from the US Fed and expectations of a faster wind-down of asset purchases, while the Omicron coronavirus virus scare has also hurt the risk appetite in the market. The Fed seems to be concerned about reining in high inflation over the impact of the Omicron variant now, which is boosting the appeal of the safe-haven dollar. Inflation in the US is running at a multi-decade high, and rising price pressures are likely to continue in 2022 as well, which coupled with a low pace of hiring has raised the bets for an earlier-than-expected rate hike. This could spur capital outflows from emerging markets like India and weigh on the local unit. The Fed is likely to wrap up the taper process by March 2022 and follow through with its rate hike cycle by April or May. Besides, the recent rebound in crude oil prices has paved the way for the rupee to weaken towards 76.60 in the near-term. All eyes now will be on the key central bank meetings lined up this week which shall steer the path of the domestic currency going forward.

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