Indian Rupee strengthens against the US dollar despite the US economy adding 128k new jobs in October. The USD/INR exchange rate settled 61 paise lower at 70.32 to the US dollar on Friday close. The bearish momentum slowed down during the early hours of a new week of trading as Rupee was seen quoted around 70.45 after the London open.
The US dollar couldn’t take advantage of the upbeat US NFP data and traded lower. The dollar index, which gauges the greenback’s strength against a basket of major currencies closed the previous trading week lower at 97.12.
The benchmark equity index NIFTY 50 surged 2.27% during the last week trading session and was seen quoted at around a high of 11989 during the Asia trading hours. The Indian 10-year government bond yield has registered a +1.82% gains being quoted around 6.563 per cent.
The US job market surprised the market with better than expected job numbers but the unemployment rate inched one tick higher at 3.6% versus 3.5%, which was the lowest number seen in 50 years. While the job report showed a solid job gains and wage growth, investors continued to sell the greenback.
Globally, we can note that the greenback has been weakened after the third consecutive Fed rate cut. Emerging market currencies like the Indian Rupee is starting to gain traction against a US dollar that continues to suffer.
The trade war tensions between US and China continues to lurk in the background, adding more uncertainty in to the financial system, which in turn makes investors more risk adverse.
“We’re moving along with the deal with China. China wants to make the deal very much and we have a good relationship and we’ll see what happens. I don’t like to talk about deals until they happen, but we’re making a lot of progress,” Trump told reporters — citing Reuters.
USD/INR Technical Pattern
The USD/INR technical pattern has made a lot of progress as we’ve seen the bearish momentum accelerating. Investors should keep their eyes on key support level and big round number 70.00.
