The rupee gains sharply early on Friday, reversing a sharp fall in the previous session, ahead of the Reserve Bank of India’s policy announcement.
Bloomberg quoted the rupee at 78.9713 against the greenback, a gain of 50 paise from its previous close of 79.4713.
PTI reported that the rupee rose 46 paise to 78.94 against the US dollar in early trade.
That comes ahead of the RBI announcement. The central bank is expected to hike rates to pre-pandemic levels to tame surging inflation.
The dollar struggled to gain a footing on Friday after falling by its sharpest pace in two weeks, as investors remained on tenterhooks ahead of the widely anticipated US jobs data and amid growing worries about a recession.
The US dollar index, which measures the greenback against a basket of currencies, fell 0.68 per cent overnight, the largest fall since July 19, and last traded 105.79.
Investors await the key U.S. nonfarm payrolls report due at 1230 GMT, which will provide hints of how the U.S. economy is faring. Economists expect an increase of 250,000 jobs for the month of July, after 372,000 were added in June.
“Payrolls just clearly seems to be on everyone’s mind for tonight, so I think that’s keeping things relatively subdued,” Ray Attrill, head of FX strategy at National Australia Bank, told Reuters