Rupee seen up tracking recovery on Asian peers; US jobs data eyed

By Nimesh Vora and Anushka Trivedi

MUMBAI (Reuters) - The Indian rupee is expected to open higher versus the dollar on Friday, tracking the mild recovery in most Asian currencies and the fall in oil prices.

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

The local unit reached its lowest level in about two weeks on Thursday in the wake of the rise in Treasury yields after Federal Reserve Chair Jerome Powell's hawkish comments on monetary policy doused any lingering hopes of a near-term pivot.

There is "nothing additionally major" 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 more 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.

The offshore Chinese yuan, boosted by the below-estimates People's Bank of China daily fix, rose to 7.3182 to the dollar. It has dropped below 7.35 during India trading hours on Thursday.

The dollar index dipped to 112.77. Focus now shifts to the U.S. monthly jobs report due 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. labour market during his press conference following the Fed's rate hike decision.

Economists polled by Reuters expect 200,000 job additions and a slight uptick in the unemployment rate.

Meanwhile, oil prices slipped on Thursday. Brent crude futures fell to under $95 per barrel overnight on fears over higher U.S. interest rates and fresh concerns over China demand.

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

KEY INDICATORS:

** One-month non-deliverable rupee forward at 82.97; onshore one-month forward premium at 18 paise

** USD/INR NSE Nov futures settled at 83.0325 on Thu

** USD/INR Nov forward premium at 13.5 paise

** Dollar index down at 112.76

** Brent crude futures at $95.2 per barrel

** Ten-year U.S. note yield at 4.15%

** SGX Nifty nearest-month futures up 0.1% at 18,134

** As per NSDL data, foreign investors bought a net $168.1 million worth of Indian shares on Nov. 2

** NSDL data shows foreign investors sold a net $47.6 million worth of Indian bonds on Nov. 2

 

(Reporting by Nimesh Vora; Editing by Savio D'Souza)