- The USD came under pressure last week after Federal speakers hinted towards skipping a rate hike in June.
- While May's non-farm payrolls report showed a surge in employment numbers, providing support to the USD.
- The report revealed that payrolls in the public and private sectors increased by 339,000 in May, far surpassing the expected 190,000. May's jump followed a rise of 253,000 in April.
- The unemployment rate rose to 3.7% from a 53-year low of 3.4% in April.
- The ISM manufacturing PMI was weaker than expected at 46.9, down from 47.1 in April.
- Philadelphia Fed President Patrick Harker said on Thursday that it was "time to at least hit the stop button for one meeting and see how it goes."
- A day earlier, Fed Governor Philip Jefferson stated that skipping a rate hike "would allow the committee to see more data before making decisions about the extent of additional policy firming."
- The INR rose last week as risk sentiment improved across the globe after the US Senate passed the debt ceiling bill, meaning that the US will avoid a debt default.
- Furthermore, the data shows that India's factory output expanded at the fastest pace since October 2020 in May, owing to robust demand and output.
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