Firmer Start, Mfg PMI Highest Print Since Dec 2022

The rupee is a touch firmer in early dealing, USD/INR is down ~0.1% last printing at 81.73/76

• Broader based USD/Asia trends are dominating this morning as on shore markets re open after the observance of a national holiday.
• USD/INR printed a fresh year to date on the 27 April before paring losses into month end. Bears look to target 200-Day EMA (81.13), bulls look to break the 20-Day EMA at 82.01.
• Barclays noted, link here, that they expect the INR to exhibit resilience after appreciating last week. Any USD/INR upside is likely to be capped by RBI intervention. Sustained upbeat PMIs, confirming solid macro fundamentals, are also helping to improve sentiment as are lower oil prices.
• April S&P Global Manufacturing PMI printed at 57.2 yesterday rising from 56.4, this was the highest print in the measure since December 2022.
• Looking ahead on the wires tomorrow we have Apr S&P Global Services & Composite PMI, there is no estimate for either print.