Sentinel Digital Desk
The Indian rupee hit a record low on Monday, crossing 86 against the US dollar. This decline came after stronger-than-expected US jobs data raised concerns about delays in interest rate cuts by the Federal Reserve.
The rupee opened at 86.2050, weaker than Friday’s close of 85.9650, reflecting heightened market pressure due to global economic factors.
The US Labor Department reported 256,000 new jobs last month, much higher than the expected 160,000. Additionally, the unemployment rate fell to 4.1%, showcasing the strength of the US labor market.
According to Morgan Stanley, strong employment figures ease labor market concerns and refocus the Federal Reserve on controlling inflation. This reduces the chances of significant interest rate cuts in the near term.
Current interest rate futures indicate only one potential Fed rate cut in 2025, compared to three rate cuts in late 2024.