Rupee Rises to Six-Week High as Fed Outlook Boosts Risk Appetite
- Currency gains for fifth day in longest winning run since July
- Delay in U.S. tightening to boost Indian assets: DCB Bank
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India’s rupee rallied to a six-week high and sovereign bonds advanced amid speculation demand for emerging-market assets will be sustained after weaker-than-expected U.S. jobs data reduced odds the Federal Reserve will increase interest rates this year.
A gauge of the dollar’s strength dropped to a two-week low on Friday after U.S. wages stagnated and the hiring figures disappointed economists. Traders see a 32 percent probability that the Fed will tighten by December, down from 58 percent a month ago, according to Fed funds futures data compiled by Bloomberg. Higher U.S. rates will damp the allure of riskier assets.