Rupee rises 19 paise to 95.20 after weak US jobs
The Indian rupee got a boost on Friday, opening at 95.20 against the US dollar, up 19 paise from its last close.
This jump happened after US jobs numbers came in weaker than expected for June, making traders rethink the odds of a Federal Reserve rate hike in September (now down to nearly 53% from around 75%).
It's one of those days when global news really moves the local currency.
Dollar index drops, Asian assets gain
With the US dollar index dropping to 100.77, risk appetite picked up and emerging market currencies (including the rupee) saw gains.
Asian currencies rose by up to 0.4%, and MSCI's Asia shares index went up over 1%.
Still, analysts are keeping an eye out: exporter activity and demand for US dollars could keep things unpredictable for the rupee.
Importer payments, arbitrage hit rupee
Just earlier this week (July 2), the rupee hit a three-week low thanks to importer payments and arbitrage trades.
So even with today's gains, worries about inflation and US economic trends mean stability isn't guaranteed yet.