• Indian rupee ended lower at 87.53 against the dollar after opening at 87.35, reflecting modest depreciation amid cautious global sentiment. Intraday price action remained largely range-bound, with pressure building ahead of Fed Chair Jerome Powell’s much-awaited speech at Jackson Hole.
• Globally, the U.S. dollar firmed up on hawkish Federal Reserve expectations. The Dollar Index hovered near 98.80, while the euro and British pound saw only limited gains despite resilient PMI readings. The Japanese yen weakened further as markets continued to price in a prolonged ultra-loose policy stance from the Bank of Japan.
• Market focus now shifts to Powell’s remarks, which could recalibrate expectations for Fed rate cuts. While investors are pricing in a potential reduction in September, recent U.S. economic data—particularly strong labor market and retail sales figures—may lead Powell to strike a more cautious tone. At the same time, political pressure from the White House for aggressive easing adds another layer of uncertainty.

Rupee opened lower at 87.35 levels against yesterday’s closing of 87.27 levels. Equity market benchmarks are trading about 0.2 lower today.

DXY is trading higher at 98.68 level. USD was trading firmer against its rival currencies as data releases showed resilience. USD recovered after some Fed officials pushed back on rate cut bets. Probability of September rate cut has come down to 70 from nearly 100. Fed Chairman would speak tonight at the Jackson Hole and may offer some cues.