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The US dollar index surged above 100 mark on Friday to a two month high following strong US jobs report that increased possibility of a Federal Reserve interest rate hike soon. Jobs data showed the US economy added 172,000 positions in May, far exceeding forecasts. The report pushed Treasury yields higher, with the 10-year yield rising above 4.5% fueling concerns that elevated borrowing costs could weigh on economic growth and investment. Meanwhile, lack of any concrete settlement on US and Iran war front that is keeping oil prices elevated is also adding to inflationary pressures and flocking inventors to dollar for respite. US stocks also slumped on Friday after a strong jobs report consolidated the outlook of restrictive interest rates, while chip producers extended their selloff. The dollar index that measures the greenback against a basket of currencies ended the week at 100.03, up 0.67% on the day. Powered by Capital Market - Live News

Rupee closed higher at 95.1300 per Dollar on Friday (05 June 2026), versus its previous close of 95.8700 per Dollar.Powered by Capital Market - Live News

The Indian rupee appreciated 81 paise to close at 94.93 (provisional) against the US dollar on Friday after the Reserve Bank announced measures to support foreign capital inflows and strengthen forex liquidity. The announcements in the RBI policy boosted investor sentiments after the apex bank asserted that the country`s forex reserves provide a sufficient buffer against external shocks. The Reserve Bank on Friday expectedly kept interest rates unchanged for the second time in a row as it weighed the impact of rising energy prices and supply disruptions caused by the West Asia crisis. The RBI kept its repo rate Steady at 5.25% amid uncertainty owing to US-Iran War. However, it expanded the Fully Accessible Route, or FAR, to include all new 15-year, 30-year and 40-year government security issuances. Due to this, the foreign investors will get wider access to longer-tenor Indian government bonds. This also opens up more room to invest in India�s bond market. The central bank has also removed investment concentration limits for foreign portfolio investors under the general route. This gives FPIs greater flexibility while investing in Indian debt. The benchmark 10-year G sec yield slipped following this and broke well under 7% mark. Yields also turned lower as government has scrapped long-term capital gains tax on investments made by foreign institutional investors (FIIs) in government securities. Powered by Capital Market - Live News

Euro jumped on Friday against the dollar as recent Eurozone data signals towards an ECB rate hike in the near term. Euro-area inflation hit 3.2% in May, its highest in over two and a half years amid rising inflationary pressures due to elevated oil prices. However, Eurozone retail sales data for April declined at a faster pace of 0.4% in April, compared to the 0.3% contraction expected. Meanwhile, dollar index is trading slightly lower on Friday, favoring gains in Euro. The US Dollar Index (DXY), which tracks the Greenback�s value against six major currencies, trades 0.19% lower to near 99.19 ahead of the United States (US) Nonfarm Payrolls (NFP) data for May. EUR/USD pair is extending gains above $1.16 at $1.1643, up 0.20% on the day although caution will be exercised amid developments surrounding a potential US-Iran peace agreement to end recent hostilities. Tensions remain highly elevated following warnings from Iranian Foreign Minister Abbas Araghchi, who declared that the strategic Strait of Hormuz falls within Iranian and Omani territorial waters and asserted that US regional military bases are active targets for retaliation. On the NSE, EUR/INR futures are down 0.76% at 110.80. Powered by Capital Market - Live News

British Pound edged up today as steady risk appetite in world markets supported the currency. Pound took a hit earlier in the week amid tepid economic cues. UK service-sector activity moved into contraction in May for the first time in more than a year. PMI Services (final) fell sharply from 52.7 to 49.3, while PMI Composite dropped from 52.6 to 49.7, marking the first contraction in overall private-sector activity in 13 months and the weakest reading since April 2025. However, lows around 1.3400 mark capped losses for GBP/USD pair. It is currently trading at 1.3456, up 0.23% on the day. On NSE, GBP/INR futures are quoting at 128.12, down 0.67% on the day after holding around 128.50 mark in morning trades. Overall movement is rangebound. Powered by Capital Market - Live News