• Spot rupee ended at 95.71/72o a dollar versus today’s opening level of 95.44/45 levels. The rupee came under pressure following rise in Middle east tensions and consequently surge in crude oil prices. Equity market benchmarks suffered sell off today and ended about 0.4 lower.
• Data release showed India’s HSBC Composite PMI rose to 59.3 in May 2026, surpassing the preliminary estimate of 58.1 and reaching its highest level since November. The reading also improved from 58.2 in April, pointing to a stronger expansion in private-sector activity. The Services PMI was revised higher to 59.8 in May 2026 from the preliminary estimate of 58.9 and a final reading of 58.8 in April.
• The May 2026 PMI data paint a picture of an economy struggling to regain momentum amid persistent geopolitical uncertainty, elevated energy costs, and weakening demand. The Composite PMI remained below 50 despite an upward revision, signalling the sharpest downturn in private-sector activity in 18 months. The weakness was concentrated in services, while manufacturing remained in expansion territory. Demand conditions deteriorated further, particularly in export markets, and labour market conditions weakened as employment losses accelerated. Rising energy prices linked to the Middle East conflict continued to fuel strong input-cost inflation, while firms maintained elevated output price increases. For the individual economies, Spain emerged as one of the more resilient performers, while Italy displayed relative stability. While Germany showed tentative signs of improvement, France remained the weakest major economy in the bloc.
• From the UK, the Composite PMI slipped below 50 for the first time in more than a year as services activity weakened sharply. Mfg. benefited from a temporary boost in orders as customers sought to avoid anticipated price increases linked to the Middle East conflict. However, overall demand softened, and employment continued to decline, with firms citing higher labor-related costs and National Insurance contributions as key factors.
• EURUSD and GBPUSD are trading lower at 1.1619 and 1.3440 levels.
• Key data releases ahead: ; US: ADP Non Farm Employment change; Final Services PMI ; ISM Services PMI; Factory Orders; Beige Book.

The rupee opened lower at 95.47 levels, as rising Middle East tensions rise on reports of fresh attacks. Equity market benchmarks are trading about 0.85 lower today.

DXY is trading steady at 99.13 level today. US labour market data for April 2026 paints a mixed but still relatively resilient picture, even as broader sentiment and geopolitical risks weigh on the outlook.

On the labor side, worker turnover is clearly cooling. Job quits fell to 2.977 million, the lowest since mid-2020, with the quits rate slipping to 1.9. The decline was broad-based across sectors This suggests fewer workers feel confident enough to voluntarily leave their jobs, typically a sign that labour-market tightness is easing and bargaining power is shifting away from employees. At the same time, job openings surged sharply by 731,000 to 7.618 million, the highest level since late 2024 and well above expectations. However, hiring (5.1 million) and total separations (5.0 million) both edged lower, reinforcing the idea of a labor market that is not collapsing but becoming more cautious and less fluid—fewer people are moving jobs, and firms are hiring and letting go at a slower pace. Together, the combination of falling quits and rising openings suggests a somewhat unusual dynamic: demand for labor remains strong on paper, but worker mobility is weakening, pointing to uncertainty rather than overheating.