• The rupee traded within a tight range due to alternate dollar buying and selling. Hopes of an agreement for a ceasefire between US and Iran lifted sentiment. Equity market benchmarks ended about 1 higher today.
• DXY is trading slightly lower at 99.86 level. Risk appetite has improved modestly on hopes that the US, Iran and some mediators are discussing a 45-day ceasefire. Additional reports indicating that more ships are passing through the Strait of Hormuz helped ease pressure on oil prices, offering some temporary relief. Side by side, President Trump has threatened to target Iran’s power plants and amid counter threat by Iran to strike energy infrastructure in neighbouring Gulf countries.
• Investors are now awaiting a series of key economic releases that will provide further insight into the health of the economy, including the CPI report later this week and the FOMC minutes.
• Markets have fully priced in a pause in the federal funds rate later this month and expect borrowing costs to remain steady throughout the year.

Rupee continues to trade on positive note, trading below 93 levels against last week 93.11 levels. Market volumes will be lower today due to long weekend holidays in the West and European holidays today. Equity market benchmarks are trading about 0.4 lower in early trades.

DXY is trading higher at 100.14 level today. USD is still holding on to its gains after strong NFP data and renewed threats from President Trump.