5 Feb 2024

USD surges amid stronger than expected job report.

The USD strengthened as the US nonfarm payroll report exceeded expectations, with 353,000 jobs added, reducing the likelihood of a near-term Federal Reserve rate cut. INR rose on robust factory growth.

author dp
Team INRBonds
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         The USD ended the week higher after a stronger-than-expected US nonfarm payroll report, which saw almost double the number of jobs created compared to expectations, reducing the chances of near-term Federal Reserve interest rate cuts.

         353,000 jobs were added to the US payroll in January, well above the 180,000 expectation, and December�s payroll figures were also upwardly revised to 333,000 from 216,000. Average hourly earnings increased by 0.6% after rising 0.4% in December.

         The data comes after the Federal Reserve interest rate decision on Wednesday, where the central bank left rates unchanged, and Federal Reserve Chair Jerome Powell, as good as ruled out a March interest rate cut.

         INR is trading higher against USD amid higher factory growth, which hit a four-month high in January.

         India�s manufacturing PMI rose to 56.5 in January from December�s 18-month low of 54.9. The data comes amid expectations that India will remain the fastest-growing major economy this year, boosted by government spending.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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