• Spot rupee closed at 85.70/71 to a dollar level after opening at 85.92/93 level. The rupee appreciated today on the back of dollar weakness in overseas markets and FII/FPI inflows into domestic markets. Today the equity market benchmarks ended about 1.2 higher.
• DXY is trading lower at 97.10 level. DXY is now trading near the 2022 level on growing speculation that President Trump may replace Fed Chair Powell by September or October. Such an action might mean that the Fed would be led by a dove, who would begin cutting rates sooner.
• Major currency pairs are trading sideways today ahead of the Q1 Final GDP data from the US tonight. EURUSD has remained firm above 1.17 level, despite weakening German Consumer morale.
• German consumer sentiment slipped slightly in July, with the Gfk index easing from -20.0 to -20.3, missing expectations of a recovery to -19.0 despite a sharp rise in economic and income expectations index.
• Important data releases scheduled today: US: Weekly Jobless claims; Durable goods orders; Core Durable goods orders; Goods Trade balance; Prelim Wholesale inventories m/m; CB Leading index m/m; Pending Home sales m/m;

Rupee opened higher at 85.92 levels, and is likely to trade with an upward bias today tracking the other Asian currencies today. Equity market benchmarks are trading about 0.2 higher in early trades.

DXY is trading lower at 97.30 level today. The US dollar index fell to its lowest level in more than three years, as easing geopolitical tensions, expectations of Federal Reserve rate cuts, and rising fiscal concerns weighed on the currency.