The rupee soared against the US dollar, due to a positive risk atmosphere in Asia and the dollar struggles . The unemployment rate in the United States soared, and the US jobs report supported demand for Asian assets .
MUMBAI: On Monday, the rupee soared against the US dollar, due to a positive risk atmosphere in Asia and the dollar struggles.By 0454 GMT, the rupee was down 82.14, down from 82.44 in the previous session.The local currency has been trading in the 82.11 to 82.25 range.Asian stocks increased, while currencies, except for the Chinese yuan, increased.
The headline job additions, which defied forecasts and the higher-than-expected increase in wages, were negative for Asian currencies.The job number had little effect on US yields and the chances of a 50 or 75 basis point rate increase by the US Federal Reserve next month.The dollar fell against its major peers, however, while Wall Street soared.According to a note issued by ING Bank, the labour market remains relatively stable (the survey) and it keeps the possibility of a fifth 75bp increase alive. The October inflation report is due to be released on Thursday.The 1-year implied yield climbed to 2.26%, with forward premiums only slightly higher.Indian equities were marginally higher, but still well below the day's highs.Oil prices dropped on fears of competition from China.