Week in FX Asia – Indian Rupee Falls Again as US Employment Report Beats Expectations

Last week the Indian Rupee touched a historic low (60.80) as fears Fed tapering fears seized the market. Those fears are proving to be founded as on Friday’s Non-farm payroll report the US economy added 195,000 jobs, beating analyst expectations by around 30,000. The INR continues to fall against the USD and is now trading above the 61.10 price level which is now the new historic low for the currency.

Internationally Central Banks from Europe and the United Kingdom maintained their rates with a promise of low rates dispelling fears of a global end of QE. However the US employment announcement benefited the dollar across the board as it is seen as another proof of sustained economic recovery.

The Reserve Bank of India Governor talked to the press before the NFP release and did not add anything beyond the well known mandate of the central bank. Volatility is not their main concern and the CB does not have a price target or a band for the currency. That being said there were rumours last week that the RBI was calling trading desks and asking for a reduction of speculative INR positions.


* CNY Consumer Price Index
* GBP NIESR Gross Domestic Product Estimate
* CNY New Yuan Loans
* USD Fed Releases Minutes from Jun 18-19 FOMC Meeting
* JPY Bank of Japan Monetary Policy Statement
* JPY Bank of Japan Rate Decision
* AUD Employment Change
* EUR ECB Publishes Monthly Report
* JPY Bank of Japan’s Monthly Economic Report for July
* USD U. of Michigan Confidence

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza