Rupee opens 26 paise up at 88 on easing dollar index

Indian rupee

The rupee opened 26 paise up on September 9 as the dollar index eased after weak jobs data made a rate cut by US Federal Reserve, which meets next week, almost certain.

The currency opened at 88 against the US dollar after ending  the previous session at 88.26.

The dollar index, which measures the greenback's strength against a basket of six major currencies, fell to 97.416 in the early trade from 98.347.

Adding to the rupee’s support was the changing outlook for the US dollar itself, Amit Pabari, managing director at CR Forex Advisors, said. Nonfarm Payrolls (NFP) report— a key US jobs release that measures the number of new jobs created outside of the farming sector, showed the economy added just 22,000 jobs in August, far below expectations of 75,000 and the slowest pace since January 2021. The unemployment rate ticked up to 4.3 percent, in line with forecasts but still signalling a softening labour market.

"This weak labour print pushed traders to bet more aggressively on rate cuts," Pabari said.

Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, expects the rupee to remain in the 87.80-88.30 range against the dollar.