Indian, Pakistani Rupees Strengthen Amid Weak US Jobs Data, Fed Rate Cut Expectations

The Indian Rupee and Pakistani Rupee both showed gains against the US Dollar amid weakening US job data and expectations of Federal Reserve interest rate cuts. The US Dollar Index hit a six-to-seven week low following soft US Nonfarm Payrolls data, which reported the smallest job growth since January 2021, increasing speculation of a 25 to 50 basis points rate cut by the Fed. Investors are closely watching upcoming US job data revisions for the period through March 2025, which could further influence monetary policy decisions. The Indian Rupee’s outlook remains uncertain due to concerns over US tariffs and continued outflows from Indian markets, despite some relief from a weakening dollar and RBI interventions. Meanwhile, the Pakistani Rupee maintained a positive momentum supported by global factors including oil prices and geopolitical developments affecting supply. Analysts anticipate ongoing volatility influenced by US inflation data, bond yields, and trade tensions affecting both currencies.