The dollar index is trading strong once more as the rupee opens 11 paise down at 86.26.

On July 21, the dollar index was trading high, while the rupee opened 11 paise down. After closing the previous session at 86.15 versus the dollar, the currency began at 86.26. In the morning session, the dollar index, which compares the value of the US dollar to a basket of other currencies, was trading at 98.45. It closed at 98.48 the last time. Following criticism from US President Donald Trump, who appears to have backed off from his threat to fire the head of the central bank, Jerome Powell's comments on July 22 will be widely watched. According to CME's FedWatch tool, there is a 53 percent chance that the US will lower interest rates in September. The Indo-US trade deal is still mired in disagreements over cars and agriculture, according to Anil Kumar Bhansali, executive director and head of treasury at Finrex Treasury Advisors LLP. Powell has come under fire from the US president for failing to lower interest rates or step down, so his comments will be interesting. "For USDINR, 86.40 is a resistance and 85.80 is a support," stated Kunal Sodhani, Head of Treasury at Shinhan Bank. On July 21, the Indian rupee opened 11 paise lower at 86.26 against the US dollar, compared to its previous close of 86.15, as the dollar index continued to strengthen. The dollar index, which measures the greenback’s performance against a basket of six major currencies, was trading at 98.45 in the morning session, slightly below its last close of 98.48. The firmness in the dollar reflects growing investor caution amid global uncertainties and anticipation around U.S. monetary policy cues. A key factor influencing the forex market is the upcoming statement from U.S. Federal Reserve Chair Jerome Powell, scheduled for July 22. Powell’s comments are expected to draw significant attention following public criticism from President Donald Trump, who has repeatedly pressured the Fed to lower interest rates and even hinted at Powell’s removal. This political tension has injected volatility into currency markets, with traders closely watching any policy signals from the Fed that may affect dollar movement. According to the CME FedWatch tool, there is a 53% probability of a U.S. interest rate cut in September, which is adding to the speculation. Meanwhile, unresolved issues in the Indo-US trade negotiations continue to weigh on market sentiment. Disagreements over key sectors such as automobiles and agriculture are preventing a final trade agreement, adding another layer of uncertainty for investors and currency traders alike.