Rupee Weakens Two Paise Against Dollar
It settled at 83.35 a dollar compared to Wednesday's close of 83.33.
The rupee ended 2 paise lower against the greenback on Thursday as the dollar index rose despite a fall in private jobs-fueled expectations that the US Federal Reserve is done with monetary tightening.
The currency opened 3 paise weaker against the dollar at 83.36. After trading in a narrow range of 5 paise throughout the day, it settled at 83.35 a dollar on Thursday compared to Wednesday's close of 83.33 a dollar, according to data on Cogencis.
The dollar index, which measures the strength of the greenback against major currencies across the globe, rose as much as 0.2% on Wednesday. It was at 103.80 as of 3:41 p.m.
The rupee opened weaker due to the dollar index trading higher at 104.15, according to Ritesh Bhansali, vice president of Mecklai Financial Services Ltd. "Now, the focus is on Friday's non-farm payrolls data for a clearer picture of the labour market."
"The Indian rupee is expected to be in the range of 83.30 to 83.40," Bhansali said.
Private jobs in the US declined more than expected, affirming investors' expectations that the FED is done with its rate hikes and may start cutting rates as soon as March 2024.
Around 53.1% of the Fed fund futures traders expect a rate cut in March 2024, according to the CME FedWatch Tool.
The benchmark ICE Brent Crude's February contract fell below $75 a barrel overnight and posted a 3.8% decline. As of 03.42 p.m., Brent Crude was trading 1.01% up at $75.05 a barrel.
