Indian rupee expected to open higher against dollar today

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Indian rupee expected to open higher against dollar today

The MUMBAI Reuters is expected to open higher against the dollar on Friday, based on the mild recovery in most Asian currencies and the fall in oil prices.

The rupee is projected to open at around 82.70 -- 82.75, compared to 82.88 in the previous session.

The local unit hit its lowest level in about two weeks on Thursday, as Treasury yields went up after Federal Reserve Chair Jerome Powell made hawkish comments on monetary policy that caused any lingering hopes of a near-term pivot.

There is nothing significant in terms of cues for the rupee, but the recovery on the yuan and the dip in oil will provide a bit of help, said a trader at a Mumbai-based bank.

The higher opening for the rupee is a reflection of reluctance to take on the 83 per dollar level than anything else. Asian currencies were slightly higher, recovering from the previous sessions slide.

It has dropped below 7.35 during India trading hours on Thursday.

The dollar index dropped to 112.77. The U.S. monthly jobs report will be released later in the day, which will help assess how the labour market is holding up to the Fed rate hikes.

Powell repeatedly mentioned the robust U.S. labor market during his press conference after the Fed hike decision.

Economists polled by Reuters believe that 200,000 job additions and a slight increase in the unemployment rate will result in 200,000 job additions.

Oil prices fell on Thursday. On the back of fears of higher U.S. interest rates and concerns over China demand, Brent crude futures fell to under $95 per barrel overnight.

Asian shares were mostly high despite the overnight fall in U.S. equities.