• Spot rupee ended at 96.56/57 to a dollar level after opening at 96.64/65 level. Initial USD buying was countered by suspected dollar selling by RBI around noon. Meanwhile, crude prices declined more than 3.7 during the day, but outlook for future remains uncertain. Equity market benchmarks ended lower for the fifth consecutive day down about 0.4.
• In India, flash PMI data for July 2026 indicated that economic activity remained in expansionary territory, albeit a bit of moderation in both manufacturing and services sectors. The HSBC Flash Mfg. PMI eased to 53.9 from 54.2 in June, marking the slowest pace of expansion since March 2025. In contrast, the services sector witnessed a sharper slowdown, with the HSBC India Services PMI falling to 53.1 from 57.4 in June, its weakest reading since February 2022.
• DXY is trading steady at 101.37 level, retaining most of the overnight gains. Data releases from UK to across Eurozone were mixed. UK retail sales beat expectations, rising 1.0 m/m in June (vs. -0.3 expected), with annual growth accelerating to 4.2 and Q2 sales up 0.6 q/q, highlighting resilient consumer spending. Further, in UK the Composite PMI rose to 52.1 in July of 2026 from 49.3 in the previous month, rebounding from two months of contraction and well ahead market expectations of a 49.7, The improved activity levels were supported by both manufacturing (53.6 vs 52.6 in June) and services (51.8 vs 48.8).
• In Germany, consumer sentiment weakened as the GfK Consumer Climate Index fell to -29.6 ahead of August, reflecting weaker income expectations and higher savings. However, business activity improved sharply, with Manufacturing PMI rising to 52.2, Services PMI to 49.6, and the Composite PMI to 51.2, signalling renewed private-sector growth while inflation remained broadly contained. France showed signs of stabilization, with Services PMI improving to 49.8, Manufacturing PMI easing to 50.0, and the Composite PMI rising to 49.6. Inflation pressures eased, though hiring and business confidence remained weak.
• Overall, the Eurozone Composite PMI rose to 51.9, its first expansion in four months, supported by stronger manufacturing and recovering services. Meanwhile, 12-month inflation expectations fell to 3.0, the lowest since February, alongside improved growth and employment expectation
• Key data releases ahead: US: Flash Mfg. PMI, New Home Sales.

Spot rupee opens at 96.64 level today against previous close at 96.58 level. Crude oil prices have surged sharply past $100/bbl. on renewed threats from President Trump. Dollar selling in early trades are also seen supporting the rupee. Equity market benchmarks are trading about 0.5 lower in early trades.

DXY is trading higher at 101.49 level. Dollar and bond yields surged higher as crude oil prices posted solid gains after Red Sea Attack by Yemen based militia Houthis attacked ships passing through Bab-El-Mandeb. Brent crude oil crossed $100/bbl. Overnight, surging more than $10/bbl. In one session. US 10-Year bond yield touched 4.70, for the first time since January 2025. Bund yield also pushed above 3.2, reaching its highest level since 2011, underscoring that the repricing is extending well beyond the United States. Rising bond yields point to growing expectations that central banks may need to keep monetary policy restrictive for longer if higher oil prices feed into broader inflation.