• Spot rupee closed at 87.45/46to a dollar level after opening at 87.69/70 levels The rupee appreciated sharply today amid large selling by foreign banks who act as custodians for foreign investors. Meanwhile, the USD was also weak after President Trump appeared to be preparing grounds to dismiss Fed Chair Powell when he said that he is planning to sue him in the court. Equity market benchmarks ended about 0.5 higher today.
• DXY is trading lower at 97.64 level. DXY is extending its weakness as markets bet on more Fed rate cuts amid President Trump’s law suit against Fed Chair Powell.
• EURUSD is trading higher today on the back of USD weakness. Data from Germany showed that CPI based inflation held at 2 in July, unchanged from the previous month. On a monthly basis, CPI was up 0.3 after stalling in June. Wholesale prices rose 0.5 y/y in July 2025, easing from a 0.9 gain in June. On a monthly basis, wholesale prices slipped 0.1, defying expectations for a 0.2 rise and reversing June’s gain. EURUSD and GBPUSD are trading at three weeks high.
• Important data releases scheduled today: No major data releases from the US tonight

Rupee opened tad higher at 87.66 levels, as dollar loses its shine amid globally. India's July CPI inflation fell to eight-year low of 1.55 driven by sharp decline in food prices. Equity benchmarks are up 0.4.

DXY is trading lower at 98.19 level today. USD came under renewed selling pressure in the US session following the release of July’s CPI report.

July CPI headline CPI was unchanged at 2.7 y/y, missing expectations for a rise to 2.8 y/y. Core CPI accelerated to 3.1 y/y from 2.9 y/y, topping the 3.0 y/y forecast. The annual energy index dropped -1.6 y/y, offsetting a 2.9 y/y rise in food prices. Month-on-month, CPI increased 0.2 and core CPI rose 0.3, both matching consensus. The pickup in Core CPI pressures may keep the Fed cautious. While markets still expect a September rate cut, the uptick in core CPI could limit the pace of policy easing beyond that meeting.