The U.S. dollar fell sharply against major peers on Friday after crucial monthly jobs data showed that American employers hired fewer workers than expected, which likely guarantees a Federal Reserve interest rate cut. Labor Department data showed that nonfarm payrolls increased by only 22,000 jobs last month, far short of the 75,000 positions estimated by economists polled by Reuters.
The Indian rupee hit a lifetime low on Friday, pressured by worries over U.S. tariffs, leaving traders on edge even as likely central bank intervention helped limit losses.
The rupee fell 12 paise to close at 88.14 (provisional) against the US dollar on Thursday amid sustained foreign fund outflows and a stronger greenback.
The Indian rupee ended higher on Wednesday even as most Asian currencies fell, with market participants betting on the unit staging a recovery in the near term, while weakness in the dollar index and strong local shares also aided sentiment.
The Indian rupee ended marginally higher on Tuesday, but came off the day's high, as importer demand for the greenback wiped out recovery witnessed earlier in the session.
The dollar hit a five-week low on Monday as investors looked ahead to a raft of U.S. labour market data this week that could affect expectations for the Federal Reserve's easing path.
The Indian rupee hit a record low of 88.33 against the US dollar, pressured by US tariffs, FPI outflows, and import hedging. Weakness raises inflation, import costs, trade deficit, foreign capital outflows, and corporate debt servicing challenges. RBI may intervene, but sustained recovery requires tariff rollback.
The Indian rupee recovered from its record low to end unchanged on Monday, helped by likely intervention from the Reserve Bank of India towards the later part of the session, according to traders.