<p>Fresh FIIs' inflows for upcoming IPOs as well as lower crude oil prices are expected to strengthen the Indian rupee during the upcoming week.</p>.<p>However, concerns over the Covid-19 variant -- Omicron -- will keep the Indian rupee's strength in check.</p>.<p>"Last week of December is strong for rupee and Indian equities on a last 10-year track record," said Sajal Gupta, Head, Forex and Rates at Edelweiss Securities.</p>.<p>"Oil prices are expected to be below $80 per barrel in near future on a slow down in demand on back of Omicron re-emergence. Possibility of bond index inclusion and IPO flows shall be helpful."</p>.<p><strong>Also read: <a href="https://www.deccanherald.com/business/business-news/sensex-weathers-highs-and-lows-to-deliver-a-blockbuster-2021-1064811.html" target="_blank">Sensex weathers highs and lows to deliver a blockbuster 2021</a></strong></p>.<p>Last week, the rupee covered lost ground on the back of decisive intervention by the RBI and slowed FPI redemption in Indian equities.</p>.<p>Gupta expects Indian rupee to test 74.50 this week on a strong note.</p>.<p>Rupee had closed at Rs 75.03 to a US dollar on Friday after a strong show.</p>.<p>"On the domestic front, investors will be keeping an eye on the fiscal balance number and increased expenditure could restrict sharp appreciation for the rupee," said Gaurang Somaiya, Forex &amp; Bullion Analyst, Motilal Oswal Financial Services.</p>.<p>"FII participation has been subdued in the last few sessions, but increased inflow as we get into the New Year could further support the currency."</p>.<p>Market participants are expected to track macro-data such as the Index of ECI (eight core industries) and fiscal deficit numbers which will be released during the trade week starting December 27.</p>.<p><strong>Also read: <a href="https://www.deccanherald.com/business/economy-business/omicron-global-trends-to-guide-markets-this-week-analysts-1064803.html" target="_blank">Omicron, global trends to guide markets this week: Analysts</a></strong></p>.<p>Somaiya expects the USDINR (Spot) to quote in the range of 74.70 and 75.80 next week.</p>.<p>According to Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities: "As it's a holiday season in the US, most major currency pairs are going to trade in a narrow range for the next few sessions."</p>.<p>"Rupee is likely to trade in a narrow range between 74.8 to 75.3 for the next few sessions."</p>.<p><strong>Check out latest videos from <i data-stringify-type="italic">DH</i>:</strong></p>
<p>Fresh FIIs' inflows for upcoming IPOs as well as lower crude oil prices are expected to strengthen the Indian rupee during the upcoming week.</p>.<p>However, concerns over the Covid-19 variant -- Omicron -- will keep the Indian rupee's strength in check.</p>.<p>"Last week of December is strong for rupee and Indian equities on a last 10-year track record," said Sajal Gupta, Head, Forex and Rates at Edelweiss Securities.</p>.<p>"Oil prices are expected to be below $80 per barrel in near future on a slow down in demand on back of Omicron re-emergence. Possibility of bond index inclusion and IPO flows shall be helpful."</p>.<p><strong>Also read: <a href="https://www.deccanherald.com/business/business-news/sensex-weathers-highs-and-lows-to-deliver-a-blockbuster-2021-1064811.html" target="_blank">Sensex weathers highs and lows to deliver a blockbuster 2021</a></strong></p>.<p>Last week, the rupee covered lost ground on the back of decisive intervention by the RBI and slowed FPI redemption in Indian equities.</p>.<p>Gupta expects Indian rupee to test 74.50 this week on a strong note.</p>.<p>Rupee had closed at Rs 75.03 to a US dollar on Friday after a strong show.</p>.<p>"On the domestic front, investors will be keeping an eye on the fiscal balance number and increased expenditure could restrict sharp appreciation for the rupee," said Gaurang Somaiya, Forex &amp; Bullion Analyst, Motilal Oswal Financial Services.</p>.<p>"FII participation has been subdued in the last few sessions, but increased inflow as we get into the New Year could further support the currency."</p>.<p>Market participants are expected to track macro-data such as the Index of ECI (eight core industries) and fiscal deficit numbers which will be released during the trade week starting December 27.</p>.<p><strong>Also read: <a href="https://www.deccanherald.com/business/economy-business/omicron-global-trends-to-guide-markets-this-week-analysts-1064803.html" target="_blank">Omicron, global trends to guide markets this week: Analysts</a></strong></p>.<p>Somaiya expects the USDINR (Spot) to quote in the range of 74.70 and 75.80 next week.</p>.<p>According to Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities: "As it's a holiday season in the US, most major currency pairs are going to trade in a narrow range for the next few sessions."</p>.<p>"Rupee is likely to trade in a narrow range between 74.8 to 75.3 for the next few sessions."</p>.<p><strong>Check out latest videos from <i data-stringify-type="italic">DH</i>:</strong></p>