Rupee holds steady against greenback; strength in dollar index

The rupee was largely steady against the US dollar on Wednesday amid thin trading volumes towards the end of the calendar year. Strength in the dollar index and concern about rising Omicron cases in India lent a marginally weakening bias to the domestic currency, dealers said.
With the rupee substantially gaining against the US dollar over the past couple of weeks, traders preferred to avoid fresh bets on the Indian currency on the view that room for further appreciation was limited, given widening trade deficits in the country, dealers said. The partially convertible rupee opened at 74.6900/$1 against 74.6500/$1 at the previous close. So far in the day, the Indian currency moved in a band of 74.6800-74.7175/$1.