•  Spot rupee ended at 94.25/26 to a dollar after opening the day at 94.71/72 and falling to 94.91 level. Media reports stating that the US and Iran have agreed to gradually open the Strait of Hormuz helped improve risk sentiment and further decline in the crude oil prices. Equity market benchmarks ended flat today are recovering from losses.
• DXY is trading steady at 97.8550 level. Data released today from Euro Area showed that Construction PMI fell to 41.7 in April 2026 from 44.6 in March, marking the sharpest contraction since August 2024 and extending a four-year streak of monthly declines. Large individual economies also witnessed sharp declines. However, EURUSD is holding steady at 1.1765 levels.
• GBPUSD is trading near 1.36 level while USDJPY is trading lower at 156.4150 on intervention fears.
• Important data releases scheduled today: US: Challenger Job cuts y/y; Unemployment claims; Prelim Non farm productivity q/q; Unit labour costs q/q; Const. spending m/m;

The rupee opened on a cautious note and is expected to remain under pressure as traders monitor developments in the Middle East amid tentative optimism over a possible peace deal. At the time of writing, the local unit was trading at 94.72, with immediate support seen near 95.15 and resistance is at 94.45. Meanwhile, equity market benchmarks edged about 0.2 higher in early trade, reflecting a modestly positive sentiment.

DXY is trading lower at 97.98 level as markets see hopes of US-Iran deal. Earlier in the day, risk appetite improved sharply after reports suggested Washington and Tehran were nearing a one-page, 14-point memorandum of understanding designed to end the war and establish a framework for broader nuclear negotiations. Risk sentiment turned from one of optimism turned into one of caution after President Trump posted in his Truth Social post that Iran would face severe bombing if they rejected the deal.