KEY SUPPORTS AND RESISTANCES

Rupee opened higher at 85.92 levels, and is likely to trade with an upward bias today tracking the other Asian currencies today. Equity market benchmarks are trading about 0.2% higher in early trades.

DXY is trading lower at 97.30 level today. The US dollar index fell to its lowest level in more than three years, as easing geopolitical tensions, expectations of Federal Reserve rate cuts, and rising fiscal concerns weighed on the currency.

Fed Chair Powell reiterated Wednesday that rates should remain steady for now, citing risks that the Trump administration’s tariffs could drive inflation higher. However, he acknowledged that absent those tariff concerns, the Fed would likely have continued easing. Traders are now pricing in over 60 bps of rate cuts by the end of the year, with the next move expected in September.

Yesterday, data showed that Sales of new single-family homes in the United States plunged by 13.7% from the previous month to a seasonally adjusted annualized rate of 623,000 units in May of 2025, erasing the downwardly revised 9.6% increase in April sharply below expectations that sales would be just under 700K units.

Exporters: Hedge three-month receivables near or above 86.65 level.

Importers: Hedge one-month month payables near or below 85.70 levels

Important data releases scheduled today: Ger: GfK Consumer climate index; UK: CBI Realised Sales; UK: Final Q1 GDP q/q; Weekly Jobless claims; Durable goods orders; Core Durable goods orders; Goods Trade balance; Prelim Wholesale inventories m/m; CB Leading index m/m; Pending Home sales m/m.