US dollar rallies on strong NFP gain
The US dollar rallied strongly across the board on Friday as the very hot NFP gain with higher revisions for the prior months served as a wake-up call that the Fed could be forced to raise interest rates.
The job gains have been much higher than the estimated breakeven rate lately, with the unemployment rate falling to an unrounded 4.29% vs 4.33% in the prior month.
Following the NFP report, the market fully priced in a rate hike by year-end with the total tightening standing at 26 bps right now.
The Indian Rupee got a slight boost from the RBI decision, but maintains a bearish bias amid prolonged US-Iran stalemate and hawkish Fed risk, with the Rupee’s value affected by the strengthening USD and the RBI’s warning on inflation