Spot rupee closed at 85.51/52 to a dollar level after opening at 85.28/29 level. The rupee came under pressure tracking Asian currencies and overnight report showing April trade deficit had widened to $26.2 bn. due to surge in imports. Equity market benchmarks ended about 0.25 lower.

DXY is trading steady at 100.67 level today. Forex markets are trading sideways today in the absence of market moving news. EURUSD is trading at 1.1200 level. On the data front, the annual inflation rate in Italy was unchanged from the prior month at 1.9 in April of 2025, revised lower from the preliminary estimates of 2.0 and slightly below the initial market expectations of 2.0/ The monthly rise in the consumer price index (CPI) was also unchanged from the preliminary report at 0.2. Elsewhere, Eurozone recorded a trade surplus in goods of €36.8 bn. in March, up from a €24 bn. surplus in February. Exports from the euro area rose 13.6 on a yearly basis to €279.8 billion, while imports grew by 8.8 annually, reaching €243.0 billion.

Spot rupee opened at 85.28/29 to a dollar level compared to 85.53/54 previous close. The rupee has opened stronger today tracking the USD weakness against other Asian currencies. Further, a statement by Commerce Secretary stating that the India-US trade deal is proceeding well also underpinned the currency. Equity market benchmarks are trading about 0.1 lower in early trades.

DXY is trading slightly lower at 100.64 amid a mix of data showing continuing weakness in the US economy. Fed Chair Powell’s hawkish statement overnight. Markets ignored most of the data releases and UK GDP upside surprise.