Rupee Slumps as Oil Prices Surge, US Jobs Data Looms
The Indian rupee is expected to open lower on Friday due to a jump in crude oil prices. Brent crude rose by about 4% on Thursday and added another 1% in Asian trading, reaching near $84 a barrel. The price increase has sparked concerns over the availability of the Strait of Hormuz for oil tankers.
The Reserve Bank of India's (RBI) policy actions and direct market intervention have played a key role in determining the currency's trajectory. Despite the RBI's support, the rupee had managed to move past the 95-per-dollar mark earlier this week.
Traders expect the rupee to open in the 95.35-95.40 range on Friday, having settled at 95.22 to the dollar on Thursday. The U.S. Federal Reserve's next policy move will be closely watched, with economists predicting a jobs report showing nonfarm payrolls rose by 80,000 last month.
'You will see a push higher (in dollar/rupee) today through the day. It's not just about oil. There is underlying demand (for dollars) at these levels,' said a currency trader at a bank.