June US Nonfarm Payrolls rose by 57K, missing estimates and fueling bets against Fed rate hikes.
The Indian Rupee gained against the US Dollar on Friday, with the USD/INR pair falling to near 95.26. The move followed weaker-than-expected US Nonfarm Payrolls data, which showed employers added just 57K jobs in June, well below the 110K estimate. May’s figure was also revised downward to 129K from 172K.
The US Dollar Index (DXY) dropped nearly 0.6% from Wednesday’s close, trading near 100.78. The Unemployment Rate declined to 4.2%, while Average Hourly Earnings rose 3.5% year-on-year, matching expectations. Soft labor demand has led traders to scale back expectations for a Fed rate hike in September, with odds now at 53.2%.
Fed officials have reiterated their focus on combating inflation, but the latest jobs data has tempered hawkish bets. The rupee’s recovery was also supported by lower oil prices, easing pressure on India’s import bill.