Indian rupee ends lower as dollar gains ahead of US jobs data
The Indian rupee fell to a three-week low on Friday, continuing to track falls in emerging market currencies as sentiment turned cautious ahead of key U.S. jobs data that could help determine the timing of any U.S. interest rate hikes.business Updated: Nov 08, 2014 01:07 IST
The Indian rupee fell to a three-week low on Friday, continuing to track falls in emerging market currencies as sentiment turned cautious ahead of key U.S. jobs data that could help determine the timing of any U.S. interest rate hikes.
Unlike domestic bonds and shares, the rupee fell during the week tracking global gains in the dollar due to fears the Federal Reserve would move earlier than expected to tighten monetary policy.
The rupee fell 0.45 percent against the dollar in the holiday-shortened week, posting its second consecutive weekly fall.
U.S. employers were expected to have added 231,000 new jobs to their payrolls in October, with the unemployment rate forecast to hold steady at a six-year low of 5.9 percent.
"If the U.S. data turns out to be as good as market expects it to be, then the rupee could come under pressure in the coming sessions," said Uday Bhatt, a currency trader at UCO Bank in Mumbai.
The partially convertible rupee closed at 61.6425/6525 per dollar, weaker from Wednesday's close of 61.41/42, after earlier falling to as much as 61.6750, its lowest since Oct. 17.
The market was closed on Thursday for a local holiday. Falls came after the dollar firmed to near a 4-1/2 year high against a basket of currencies on Friday.
Still, recent falls in the rupee are smaller than other in emerging market currencies. The local unit has fallen around 0.44 percent against the greenback month-to-date, while most other Asian majors have fallen 0.75 to 2 percent.
In the offshore non-deliverable forwards, the one-month contract was at 61.91/62.01, while the three-month contract was at 62.47/57.
First Published: Nov 07, 2014 09:52 IST