Spot rupee closed at 86.59/60 to a dollar level after opening at 86.62/63 level. The rupee was trading steady today supported by FII/FPI inflows while risk aversion weighed on the local currency. Equity market benchmarks recovered sharply and ended about 1.30 higher.

DXY is trading firm at 98.62 level JPY is holding near 145 level today even as data from Japan showed Core Consumer inflation accelerated at 3.7 y/y in May above market expectations of 3.6 y/y – its fastest pace since January 2023. The core-core inflation measure, excluding both fresh food and energy, also quickened to 3.3 y/y from 3.0 y/y, reflecting broadening price pressures. While the headline CPI edged down slightly from 3.6 y/y to 3.5 y/y, underlying inflation trends continue to exceed BoJ’s 2 target, where they have remained since April 2022.

Spot rupee sharply weaker at 86.62/63 to a dollar level versus previous close of 86.73/74 previous close. The US Dollar is trading slightly weaker in the international markets while markets are focused on the Middle east conflict. Equity market benchmarks are trading about 0.3 higher in early trades.

DXY is trading steady at 98.64 level today. USD index is trading slightly weaker today as traders are nervous about the ongoing Middle East conflict. Drawing more countries into the conflict would cause crude oil supply disruptions as Iran threatens to block Hormuz. Crude prices have hit a 5-month high yesterday.