The Rupee opened weaker on Friday, with a jump in crude oil prices weighing on the currency ?while fuelling expectations that the U.S. Federal Reserve could hike rates. Brent crude climbed about ?4% on Thursday and added another 1% in Asian trading, rising to ?near $84 a barrel amid renewed concerns over access to the Strait of Hormuz. Iran, ?working with Oman, proposed banning vessels deemed hostile from the strait and imposing heavy fines on those violating the proposed rules. The direction and sentiment on the rupee have been shaped ?by oil prices for months. Also, the Reserve Bank of India's policy ?actions and direct market intervention have played a key role in determining the currency's trajectory. The ?rupee ?had managed to move past the 95-per-dollar mark, helped by Brent crude slipping below $80 a barrel and RBI dollar sales. With oil-related risks back in focus, traders said the currency's direction will again depend on the extent of ?RBI support. U.S. ?nonfarm payrolls ?are forecast to have risen by 80,000 last month after an increase of 57,000 in June, according to a Reuters survey of economists. The unemployment rate is ?expected ?to hold steady at 4.2%. The data comes against ?a backdrop of heightened uncertainty over whether the Federal Reserve will raise interest rates amid inflation ?risks fuelled by higher oil prices. The dollar drifted higher against the yen and euro on Friday, building on ?the previous day's gains as doubts about an Iran peace deal buffed the U.S. currency's appeal as a haven. The greenback also drew support from higher Treasury yields after a Financial Times report citing sources close to Federal Reserve Chair Kevin Warsh pointed to the potential ?for a September interest rate hike, depending on incoming data. The dollar rose slightly to 158.505 ?yen in the Asian morning, after gaining 0.4% on Thursday, putting it on course to rise around 0.7% ?this week as it recovered from a bout of joint Japan-U.S. intervention that sent the U.S. currency tumbling from near ?a four-decade high above 163 yen on Thursday to a 13-week low of 155.20 on Monday. Against the euro , the greenback edged up to $1.1521 after strengthening about 0.3% in the prior session. Against sterling , the dollar strengthened slightly to $1.3449. The ?Australian dollar weakened a touch to $0.7029 and the kiwi dollar edged down to $0.5866. Oil extended gains on Friday amid further concerns around the opening of the Strait of Hormuz as Iran, working with Oman, ?suggested banning vessels deemed hostile from the strait and heavily fining those which violated the proposed ?rules. Brent crude futures rose 80 cents, or 0.97%, to $83.29 a barrel by 0303 GMT. U.S. West Texas Intermediate futures rose 64 cents, or 0.83%, to $77.93.......
More