- INR fell against USD after data showed that retail inflation cooled to 4.7% year on year in April, reaching an 18-month low and well below the Reserve Bank of India’s upper tolerance band for a second straight month.
- Inflation cooled from 5.66% in April to 4.7%. Food inflation, which has been a major contributor to higher prices, fell to its lowest level since November 2021.
- USD traded higher despite data showing that inflation and the US jobs market cooled.
- The US consumer price index for April eased to 4.9%, the lowest annual reading since April 2021 and slightly below the expectations of 5%. The CPI rose 0.4% month on month in April, up from 0.1% in March.
- The U.S. Michigan consumer sentiment index fell to 57.7 in May, down from April’s 63.5, its lowest level this year, amid renewed concerns of a recession.
- The data comes after the Federal Reserve raised interest rates by 25 basis points last week and hinted that it may consider pausing rate hikes in the June meeting.
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