After sliding through the 94.80-95.00 zone to a three-week low, the rupee is indicated stronger as softer U.S. payrolls data cut Fed hike bets and a weaker dollar lifted Asian currencies.
The Indian rupee is expected to open firmer on Friday at 95.12-95.16 versus Thursday's close of 95.3925, after a four-session slide that saw it break the closely watched 94.80-95.00 zone and fall to a three-week low. Earlier in the week, the rupee dropped 0.6% to 95.2475, with traders saying suspected Reserve Bank of India dollar sales around 94.75 were not enough to hold the line once stop-loss orders and weak regional cues accelerated the decline. Sentiment improved after softer U.S. labour data pushed September Federal Reserve rate-hike odds down to about 53% from roughly 75%, weighing on the dollar and lifting most Asian currencies and stocks. Lower Brent crude below $71 a barrel may also support the rupee, though traders remain focused on merchant and portfolio flows, exporter selling levels, and the broader dollar/rupee trend after the technical break above 95.