• Spot rupee ended at 95.68/69 to a dollar compared to 95.34/35 opening level. The rupee declined steadily today on reports that the US and Iran are involved in stand offs at the Middle east and dragging feet on the deal. Equity market benchmarks ended about 0.6 lower.
• DXY is trading steady at 99.06 level as markets trade cautious amid hawkish comments from ECB and BOJ officials.
• BOJ Deputy Governor Shinichi Himino stated today that the Central Bank is moving towards tighter policy, even as the Middle East crisis complicates the outlook for inflation, bond markets and Japan’s economy. He noted that the BOJ will continue adjusting policy to achieve its inflation target, stably and sustainably. Earlier, data releases showed that Core inflation in Japan slowed to 1.4 y/y versus 1.7 y/y forecast.
• ECB Executive Board member Isable Schnable warned today that the energy shock unleashed by the Middle East conflict has already gone too far, arguing that inflation pressures are now spreading through the wider Eurozone economy – indirectly supporting a rate hike.
• Important data releases scheduled today: US: HPI m/m; S&P CS Home Price index y/y; CB Consumer confidence;

Rupee opened lower at 95.38 levels, as markets are closely watching developments in the Gulf after reports emerged that US forces have attacked ships in Iranian waters. Equity market benchmarks are trading about 0.25 lower in early trades.

DXY is trading softer at 99.05 level today. Markets are closely watching the developments on the Middle East peace talks. Uncertainty remains high with officials on both sides signalling that key issues are yet to be resolved and continue to send mixed messages on the developments. US President Trump said that “the deal with Iran will either be a great and meaningful one, or there will be no deal,” while an Iranian Foreign Ministry spokesman noted that “a consensus was reached on many of the topics discussed, but no one can claim that the signing of an agreement is imminent”.