The Indian rupee is set to open higher against the US dollar on Friday, with traders expecting the currency to trade in the 95.12-95.16 range.
This marks a potential reversal from Thursday’s close of 95.3925, as market participants reassess the Federal Reserve’s policy trajectory following a lukewarm US jobs report.
6% to close at 95.2475 per dollar, marking its lowest level in nearly three weeks.
The labor data, which came in softer than anticipated, has dampened expectations for an imminent rate hike by the Fed.
This shift in sentiment has provided a reprieve for emerging market currencies, including the rupee, which had faced pressure from a strengthening greenback.
The reassessment of Fed policy expectations is also driving Indian equity markets higher, as investors price in a more dovish near-term outlook for US monetary policy.
The rupee’s recent weakness had seen it weaken 0.6% to close at 95.2475 per dollar, marking its lowest level in nearly three weeks.