• Spot rupee closed at 85.63/64 to a dollar level after opening at 85.48/49 level. The rupee slipped during the day on reports of covid surge in certain pockets and in countries like Singapore, Hong Kong and China. Equity market benchmarks ended about 1.06 today.
• DXY is struggling to float above 100 level and is trading at 100.20 level today on concerns about the US economy and fiscal concerns. Forex majors are trading largely steady today in the absence of major data releases
• Data release showed that German Producer prices fell by 0.9 y/y in April 2025, following a 0.2 drop in march and worse than market forecasts of a 0.6 decline, marking the second consecutive monthly decline. Excluding energy, producer prices rose by 1.5. On a monthly basis, the PPI shrank by 0.6, marking the fifth straight month of decline, after a 0.7 drop in the previous month and missing the market consensus of a 0.3 fall. Elsewhere, Euro area Hourly labour costs rose by 3.2 y/y in Q1 2025, marking the smallest increase since Q3, 2022 versus 3.7 rise in the previous quarter. Elsewhere, Construction output in the Euro Area fell 1.1 from the previous year in March 2025, following a revised 0.6 decrease in the previous month.
• Important data releases scheduled today: EZ: Consumer confidence.

Rupee opened marginally higher at 85.48 levels, and is expected to trade in familiar ranges between 85.25 and 85.70 for the day. Equity market benchmarks are trading flat in early trades.

DXY is trading at 100.38 level. The dollar index fell yesterday on concerns of US fiscal outlook after Moody’s downgraded the US credit rating from Aaa on Aa1, citing rising government debt and a widening budget deficit. Fiscal concerns were further exacerbated by the approval of President Trump’s tax-cut legislation by a key congressional committee on Sunday.