The rupee traded rangebound on Wednesday, oscillating around the pivotal 75.00 mark on conflicting news of the Omricon spread and Powell statement which weakened the dollar but continues to exhibit its weak overtone amidst the impending dollar tapering next month. The INR stays on the back foot around 74.94, down 0.10% intraday while extending the previous day’s losses from November’s top. That said, bearish RSI divergence and the pair’s inability to cross a horizontal area established from early October favor Indian rupee buyers (INR) heading into the European session. It’s worth noting that the latest weakness eyes an ascending support line from November 18, close to 74.75, but any further declines will be challenged by lows marked during October and 200-SMA, respectively around 74.70 and 74.60. Adding to the downside filters is the early November’s peak near 74.55.......
The dollar index was steady in early trade today. On Wednesday, the dollar recovered losses after reports of first Omicron infection in the US. Most Asian indices today fell as concern about the impact of the Omicron variant of COVID-19 on the economy continued to weigh on investor sentiment. US stocks saw a sharp reversal overnight after US health officials on Wednesday confirmed the country’s first case of the new and heavily mutated Omicron in California. Investors will continue to watch for developments on the Omicron variant, with uncertainty around its rate of transmissibility and fears that it could evade vaccines. South Africa, where Omicron was first detected, reported almost double the cases on Wednesday from Tuesday.......