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Indian rupee firms as Fed-rate odds swing toward steadier policy
CME FedWatch data showed the odds of the Fed leaving rates unchanged in October rising to 82.3% from 35.8% last week.
The Indian rupee edged higher versus the US dollar after an extended weekend, with USD/INR slipping to around 96.29 following India’s market closure for Mahatma Gandhi Jayanti, FXStreet reported.
The move reflects traders trimming expectations for a more hawkish Federal Reserve stance tied to the October policy meeting, a shift that improves the appeal of higher-yielding risk assets like INR.
CME FedWatch showed the probability of the Fed holding rates unchanged in October increased to 82.3% from 35.8% the prior week, after US September Nonfarm Payrolls came in softer than expected, FXStreet said.
US Bureau of Labor Statistics data cited by the outlet showed job growth of 29K versus under 90K estimates and the prior 133K reading revised down from 162K, while the unemployment rate rose to 4.2% from an expected 4.1%.