India’s rupee rose the most in almost two weeks and government bonds gained after U.S. jobs data eased concern the Federal Reserve will begin paring stimulus soon.
Labor Department figures showed Aug. 2 that American employers added 162,000 jobs in July, compared with the 185,000 increase projected in a Bloomberg survey. Chairman Ben S. Bernanke said June 19 the Fed may start paring its bond-buying program this year if the economy achieves sustainable growth. The rupee’s gains may be limited as foreign funds keep selling Indian debt, according to QuantArt Market Solutions Pvt.
“The U.S. unemployment rate details show evidence that the labor market is not too strong,” said Samir Lodha, senior partner at QuantArt Market in Mumbai. “Strong intervention” from the Reserve Bank of India is needed to stabilize the rupee, he said.