US jobs boom hits EM currencies, rupee holds firm

A strong US jobs report spurred expectations of tighter Fed policy, sending MSCI’s emerging‑market currency index to its lowest since early April and pulling down the peso and rand. The Indian rupee bucked the sell‑off, rallying after a government‑backed support package. The move underscores how US labor data now drive risk‑asset flows.

A stronger-than-expected jobs report sparked fears of prolonged high rates, prompting a sharp tech selloff that snapped the S&P 500’s nine-week winning streak with a 2.6% weekly drop. The Nasdaq tumbled 4.5%—its biggest one-day fall since April 2025—while semiconductor and AI stocks led the decline.

The RBI kept rates unchanged and announced measures to attract foreign investors, boosting domestic sentiment in Indian equities. However, stronger US jobs data pushed GIFT Nifty down 1.5%, and high oil prices and Middle East tensions keep investors cautious, likely leading to a range‑bound opening.

Tata Steel plans to repay its ₹16,629 cr overseas debt over the next two years using internal cash flows, aiming for zero foreign‑currency borrowings. The move follows a five‑year reduction that cut FX exposure from about 50% to 18% of total borrowings, strengthening its balance sheet.

Maruti Suzuki, facing a ₹30,000 price hike on all models from June due to West Asia war‑linked commodity inflation, is considering a dealer‑requested price‑protection window for its entry‑level cars. The company also launched a financing scheme with AU Small Finance Bank to help buyers of models like WagonR, Celerio and Alto K10.

Gurugram‑based startup Optimist launched its first inverter split air‑conditioner, a 1.4‑ton unit priced at ₹39,990. With an ISEER of 6.05 and features like Turbo+ mode, app‑based control, and a built‑in refrigerant‑level indicator, it aims to deliver reliable cooling up to 50 °C for Indian households.

The RBI and the Indian government announced a package of reforms allowing foreign investors broader access to long‑term sovereign bonds, tax‑exempt interest and capital gains, and higher equity limits. The move aims to attract fresh foreign capital, support the rupee and narrow a $40‑50 billion balance‑of‑payments gap.

The RBI lowered its FY27 GDP growth forecast to 6.6% from 6.9%, citing the Middle East conflict, rising crude prices and a weak southwest monsoon. It also raised the retail inflation outlook to 5.1% from 4.6% while keeping the repo rate at 5.25%.

A new ECB report shows global central banks have shifted more of their reserves into gold than US Treasuries, echoing the 1971 exodus that ended dollar‑gold convertibility. The article argues that rising deficits, tariff disputes and strained alliances are driving the shift, which could erode the dollar’s role as the world’s reserve currency.

A KPMG forensic review verified that the ₹646 crore fraud at IDFC First Bank’s Chandigarh branch stemmed from collusion among branch staff, customer representatives, and outsiders, but was confined to that single location. The bank has already recorded the loss and is cooperating with investigators.

Spot gold fell 3.3% to $4,328 per ounce after a robust May jobs report lifted Treasury yields and the dollar, fueling expectations of another Fed rate hike this year. The drop marks the sharpest decline in over two months, dragging down silver and other precious metals.