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FUNDAMENTALS OF CURRENCY:

* WEEK AHEAD: The US is releasing the second estimate of Q1 GDP, alongside durable goods orders, personal income and outlays, and PCE price index; while President Biden's FY2022 budget is also highly anticipated. Elsewhere, central banks in South Korea, Indonesia and New Zealand will be deciding on monetary policy, while other GDP updates to follow include those from Germany, France, Mexico and Singapore. Investors also eye the publication of the Eurozone business survey, China industrial profits, Japan unemployment rate and Australia's first-quarter construction output

* The dollar index recovered some ground to trade around the 90 level on Friday after hovering at yearly lows early in the session. Treasury yields edged higher after fresh Markit PMIs pointed to record growth in both services and manufacturing sectors in May but also to rising inflationary pressures. On the week, however, the greenback fell 0.3% as the Fed minutesfuelled bounce fades. FOMC minutes on Wednesday showed some policymakers are already comfortable discussing a tapering plan if the US economy continues to pick up strongly and inflationary pressures persist.

* The euro firmed above the $1.22 level on Friday, remaining close to an over four-month peak of $1.224 hit on Wednesday, helped by broad dollar weakness and the prospect of a solid economic recovery in 2021. The flash PMI survey showed the Eurozone private sector activity grew at a sharply faster rate in May, easily beating market expectations, as economies continued their reopening efforts.

U S DOLLAR INDEX

Technical indicators (Daily):

* RSI- -33.3579

* MACD- -0.2866

* MOVING AVERAGES (20,50,100)- (73.6344/73.6944/73.3227)

USDINR TECHNICAL CHART

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