USD/INR loses ground above the 83.00 mark amid the USD softness, investors await RBI rate decision, US NFP

• USD/INR holds negative ground around 83.20 amid the USD softness.
• The Reserve Bank of India (RBI) is likely to maintain interest rates for the fourth consecutive time at its October meeting.
• US private payrolls for September rose by 89,000 from the previous reading of 180,000, worse than expected.
• Traders will closely watch the RBI rate decision, US Nonfarm Payrolls on Friday.

USD/INR loses traction around 83.20 during the Asian session on Thursday. The weaker US Dollar (USD) following the downbeat labor market data on Wednesday triggers some follow-through selling to the pair. Market participants await the Reserve Bank of India (RBI) rate decision on Friday for fresh impetus.

RBI will announce its monetary policy on Friday, which is likely to maintain a status quo on interest rates for the fourth consecutive time. The benchmark repo rate was raised to 6.5% in February and remained unchanged since then due to the higher retail inflation and global factors, particularly high crude oil prices.

According to the Automatic Data Processing (ADP) reported on Thursday, the US private payrolls for September increased by 89,000 from the previous reading of 180,000, below the market expectation of 153,000. This figure posted the lowest level since January 2021.

Additionally, the US ISM Services PMI dropped to 53.6 in September versus 54.5 prior, matching the market estimation. The softer labor US data exerts some selling pressure on the US dollar and acts as a headwind for the USD/INR pair.

Market players will take cues from US weekly Jobless Claims due on Thursday ahead of the highly-anticipated US Nonfarm Payrolls on Friday. The US economy is expected to create 170,000 jobs in September. These events might trigger the volatility in the market and give a clear direction to the USD/INR pair.