Spot rupee closed at 86.15/16 to a dollar level after opening at 86.00/01 level. The rupee depreciated as foreign fund outflows were seen in the equity markets. The rupee traded between 85.97 and 86.2425 levels. Domestic equity market benchmarks ended about 0.6 lower today.

DXY is trading lower at 98.33 level. Dollar index is trading slightly lower today, but market movement is mostly range bound. Yesterday, Fed Governor Adriana Kugler said it would be appropriate to keep rates steady for “some time.” However, Fed Governor Christopher Waller reiterated his call for a rate cut later this month, and San Francisco Fed President Mary Daly maintained her outlook for two cuts this year. Meanwhile, Trump reassured investors by clarifying he was not planning to fire Fed Chair Jerome Powell, though he continued to criticize Powell for not cutting rates more quickly.

Spot rupee opens weaker at 86.00/01 to a dollar level compared to 86.08/09 previous close. The rupee is likely to trade in a narrow range with a downward bias. Equity market benchmarks are trading about 0.2 lower in early trades.

DXY is trading a tad lower at 98.44 level. Dollar index gained in early US session, but was capped by comments from Fed Governor Christopher Waller when he said that it is time to cut rates by 25 bps at the July meeting.