Rupee steady as markets await US jobs data amidst moderation in Fed rate cut expectations

Rupee to open with minor change: The Rupee is anticipated to open with marginal changes on Friday, with traders closely monitoring the surge in US bond yields following positive job market data.

Non-deliverable forwards suggest the Rupee's opening around 83.24-83.25 against the US dollar, a marginal shift from its previous close at 83.23.

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A 9 basis points rise in the 10-year Treasury yield to 3.99 per cent was noted on Thursday after encouraging US initial jobless claims data revealed a moret-than-anticipated drop to 202,000 for the last week. 

Additionally, data indicated that private employers in the US hired more workers than initially projected in December.

Projections for the Federal Reserve to maintain current interest rates at its March policy meeting have increased to 34 per cent, up from 29 per cent on January 3, according to CME Group's FedWatch tool. This shift marks a notable change from the less than 10 per cent expectation just a few weeks prior. Investors are currently pricing in a 140 basis points reduction in rates for the year, down from 160 bps in late December.

Ahead of the highly scrutinised US non-farm payrolls data expected later in the day, showing an estimated 170,000 job additions last month, the Rupee may experience slight pressure.

A foreign exchange trader noted a "dollar-long bias" in the market, with expectations of a higher non-farm payrolls data print. Analyst Dilip Parmar from HDFC Securities highlighted the Rupee's ongoing struggle within its established trading range.

The currency's performance remains contingent on developments in the global economic landscape and the forthcoming US job market report.

(With Reuters Inputs)