Rupee Depreciates To Below 75/$ On Firm Dollar, Omicron Worries

The domestic currency in trade on December 2, 2021 has depreciated to day's low of 75.085 as against the US dollar. Last at the time of writing this copy, at around 11:59 am, the currency traded at 74.988, weak by 0.02 percent. The unit opened at 75.06 as against the previous close of 74.905 and extended losses to 75.085.

The currency has been under pressure owing to gains in the dollar which has spurred after the US Fed's Chair call to expedite the pace of its monetary tightening programme. Last, the dollar index futures-Dec 21 however traded flat at with a negative bias at 96.02.

Another deterrent weighing on the Indian rupee has been new Covid 19 variant Omicron -cases of which are being diagnosed in 24 nations as reported by NPR including the US and South Korea among others. The virus has once again hurt investor sentiments and re-ignited economic growth concerns, leading to risk-off mood.

The depreciation in the currency continues even as the crude which is being imported into the country has fallen in price by a huge quantum. Last WTI crude futures for January 22 traded higher by over 1 percent at $66.45 per bbl. Nevertheless, as oil prices globally are seeing surging on tigheting of supply by major oil producers, there is also casted a pressure on the rupee.

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