- Indian Rupee (INR) is falling after gains yesterday
- Indian exports to the US dropped 8.6%
- The US Dollar (USD) is flat versus major peers
- 119k jobs were added in September, but unemployment rose to 4.4%
The US dollar-to-Indian rupee (USD/INR) exchange rate is rising after four days of losses The pair fell 0.07% in the previous session, settling on Wednesday at 88.48. At 18.30 UTC on Thursday, the pair trades +0.27% at 88.70
The Indian Rupee fell on Thursday despite a smaller-than-expected hit to exports from U.S. trade tariffs.
Indian exports to the US dropped 8.6% year on year to 6.3 billion U.S. dollars in October, the second month during which India experienced 50% tariffs on imports from the country. The decline was less than the 12% drop seen in September.
Negotiations between New Delhi and Washington have continued even as other Asian countries, such as South Korea and Japan, have reached agreements to bring down tariffs. However, India has said that it will not be rushed into reaching a deal.
While the textile sector has reported a fall in orders to the US, the broader economic impact has been limited.
India is hopeful that Washington will roll back the 25% tariffs linked to Russian oil purchases and then move towards a 15% overall rate.
The US Dollar is rising against the Rupee but falling against its major peers. The US Dollar Index, which measures the greenback against a basket of major currencies, is trading 0% at 100.23, after strong gains yesterday.
The U.S. dollar changed as investors digested the September nonfarm payroll report, released after a delay due to the U.S. government shutdown.
The data showed that 119,000 jobs were added in September, whilst the two previous months saw a total downward revision of 33,000. Meanwhile, the unemployment rate unexpectedly increased to 4.4% its highest level in four years, up from 4.3%. Average earnings were also weaker than expected at 0.2% month on month, down from 0.3%.
Data paints a mixed picture for the Federal Reserve ahead of the December rate decision.
It also comes after the FOMC minutes, released yesterday, which showed a more hawkish stance by policymakers at the Fed.
The market is pricing in only a 27% likelihood of a 25-basis-point rate cut at the December meeting.