The Indian rupee opened 19 paise higher at 95.20 against the US dollar on Friday, 3 July, snapping a four-session losing streak as a weaker US dollar boosted emerging market currencies.
The US dollar index, which tracks the greenback against a basket of six major currencies, slipped 0.2% to 100.77 after falling 0.5% in the previous session. The index is also on track for its biggest weekly decline since early April.
The dollar came under pressure after fresh data showed the US labour market lost momentum in June. Job growth slowed sharply, while payroll figures for the previous two months were revised lower, reinforcing expectations of a cooling economy.
The softer employment data prompted traders to scale back expectations of an imminent Federal Reserve rate hike. Interest rate futures now indicate around a 53% probability of a September rate hike, down from nearly 75% before the jobs report, providing support to the rupee and other Asian currencies.
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