- Indian Rupee (INR) edges lower despite manufacturing PMI rising
- New orders surged by hiring slowed
- US Dollar (USD) rises after solid jobs creation
- Average earnings cooled
The US Dollar Indian Rupee (USD/INR) exchange rate is rising, extending gains from the previous week. The pair rose 0.03% in the previous week, settling on Friday at 82.87. At 10:30 UTC, USD/INR trades +0.09% at 82.97 and trades in a range of 82.89 to 83.13.
The Rupee is showing resilience against a stronger U.S. dollar as Indian factory activity hits a three-month high. According to the latest PMI data, factory activity jumped to 58.6 up from 57.7 in July, marking the highest level since may. The level 50 separates expansion from contraction.
The data also showed that new orders expanded at the fastest pace since January 2021 and export orders accelerated the fastest case in 10 months. However, job creation fell to a four-month low.
The US Dollar is rising across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at +0.04% at the time of writing at 102.97, extending gains from last week.
The US dollar is rising across the board after Goldilock’s US nonfarm payroll report. The closely watched report showed stronger-than-expected job creation but that wages grew at a slower pace than forecast.
the headline figure shows that 187,000 U.S. jobs were added to the payrolls in August this was up from a downwardly revised 157,000 in July. this was also above expectations of 170,000.
meanwhile, wage growth eased to 0.2% month on month, down from 0.3% and missing forecasts of 0.3%. on an annual basis, wage growth was 4.3% never done the 4.4% forecast.
The data shows that there is still solid hiring but slow wage growth gives the Federal Reserve more room to pause interest rate hikes.
The Federal Reserve is not expected to raise interest rates when it meets in September, and the market is pricing in a 56% probability that the Fed will keep rates on hold again in November.