• Spot rupee ended at 95.40 to a dollar level after opening at 95.23 level. The rupee was steadily under pressure on import demand and ended weaker today. Equity market benchmarks ended about 0.65 higher today.
• DXY is trading firmer at 101.08 level. Market players are looking forward to fresh catalysts to for new direction.
• Meanwhile, data from Eurozone showed Producer prices increased by 0.2 m/m May across both the Eurozone and the EU, while annual producer inflation accelerated to 5.9 in the Eurozone, reflecting persistent cost pressures.
• Investor sentiment improved significantly in July, with the Sentix Investor Confidence Index rising to -3.1 from -13.4 in June, marking a third consecutive monthly improvement. The recovery was supported by easing geopolitical concerns and optimism over Germany's economic reform efforts.
• The Euro remained broadly stable around $1.14, although expectations for additional ECB rate hikes have moderated following softer-than-expected Eurozone inflation and dovish comments from ECB President Christine Lagarde. Markets continue to expect one more rate increase, likely in September.
• Germany's industrial sector showed resilience, with factory orders rising 1.9 in May, driven by strong demand for large-scale capital goods such as aircraft, ships, and military vehicles. Consumer spending also showed modest improvement, as Eurozone retail sales rose 0.2 in May, supported by stronger sales of food and non-food products, while fuel sales remained weak due to elevated energy prices.
• However, the Construction sector continues to face significant challenges. The Eurozone Construction PMI fell to 42.8 in June, signaling a deeper contraction, with activity declining across Germany, France, and Italy.
• From UK, data showed that the S&P Global UK Construction PMI edged up to 38.4 in June 2026 from 38.2 in May, below market expectations of 40 although business sentiment is highest since March. GBPUSD is however trading firm at 1.3338 level.
• Key data releases ahead: US: S&P Global and ISM Final Services PMI;

Spot rupee opens at 95.24 level today against previous close at 95.23 level. Equity market benchmarks are trading about 0.2 higher in opening trades.

DXY is trading lower at 100.92 level as markets roll back expectation of Fed rate hikes in September. The weaker labour market data significantly altered interest rate expectations. Markets sharply reduced the probability of additional Federal Reserve tightening this year, with expectations for a July hike falling to around 20 and September odds easing to nearly 50.