Overview
- President Donald Trump said the US and Iran had finalised a framework to end their conflict and reopen the Strait of Hormuz, a development markets reacted to on Monday and which is due to be signed in person later this week in Switzerland.
- Brent crude futures fell roughly 4–5 percent to about $83 a barrel as traders priced a lower risk of supply disruption and global oil volatility declined.
- The Indian rupee strengthened to the mid‑94s against the dollar and domestic equities rallied, with the Sensex posting large gains, although short‑term profit taking and net foreign institutional selling have since capped further appreciation.
- India’s recent central bank actions are shaping how far gains stick: the Reserve Bank of India’s June 5 measures to attract dollar inflows supported the rupee, but its large net short forward positions limit how much the RBI may allow sustained appreciation.
- Pakistan reported USD 4.251 billion in remittances for May and a small rise in SBP reserves to USD 17.21 billion, which offer near‑term external support even as reserves remain modest relative to regional peers.