CURRENCY OVERVIEW

 The Rupee opened strong  on Thursday, supported by an uptick in most Asian currencies on optimism over signing trade deals with the United States before the tariff deadline. U.S. President Donald Trump announced an agreement with Vietnam that cuts U.S. tariffs on many Vietnamese goods to 20% from his previously announced 46%. The deal has sparked hopes that other countries, including India, will be able to negotiate trade deals with Washington before July 9 when Trump's 90-day pause on so-called reciprocal tariffs is set to expire. Most Asian currencies traded higher, while equities were mixed.The U.S. and India are  pushing for a trade pact after Trump's deal with Vietnam. Trump threatened a 26% duty on Indian goods under his reciprocal tariff plan, with the rate temporarily lowered to 10% to allow time for negotiations. "If the India-U.S. deal is done, it will be more of a relief for the rupee and nothing beyond that," a currency trader at a bank said. Meanwhile, in a boost for Asian currencies and risk assets, weaker-than-expected U.S. private payrolls data strengthened the case for a Federal Reserve rate cut in the coming months —possibly as early as this month. U.S. private payrolls unexpectedly fell in June, the ADP National Employment Report showed on Wednesday. The dollar wobbled on Thursday after a trade agreement between the United States and Vietnam fuelled optimism over potential future deals ahead of a July 9 tariff deadline, while investors looked to payrolls to assess the Federal Reserve's next steps. Sterling firmed slightly after a sharp drop the previous session as British Prime Minister Keir Starmer's office rushed to give Finance Minister Rachel Reeves his full backing, hoping to allay investor worries about Britain's finances. The pound dropped nearly 1% and British government bonds tumbled on Wednesday, as a tearful appearance by Reeves in parliament a day after the government backed down on its welfare reforms reignited concern over Britain's finances. The pound last fetched $1.3647, slightly higher in Asian hours, while the euro was steady at $1.1806, hovering close to the September 2021 top it touched earlier this week. The yen firmed a bit to 143.56 per dollar. The dollar index , which measures the U.S. currency against six other units, was at 96.701, still near the 3-1/2-year lows it has been rooted to this week. The index is on course for a 0.5% drop in the week. Ahead of the July 9 tariff deadline, President Donald Trump announced Vietnam had struck a trade deal with the U.S. and could push other countries to reach similar agreements on duties. Although details were scant, Trump said Vietnamese goods would face a 20% tariff and trans-shipments from third countries through Vietnam will face a 40% levy. Meanwhile, Republicans in the House of Representatives struggled to pass Trump's massive tax-cut and spending bill as a handful of hardliners withheld their support over concerns about its cost. Oil prices eased on Thursday, reversing gains from the previous session, on concerns over weak U.S. demand after government data showed a surprise build in inventories in the world's biggest crude consumer. Brent crude futures fell 24 cents, or 0.35%, to $68.87 a barrel by 0044 GMT after gaining 3% on Wednesday. U.S. West Texas Intermediate crude fell 24 cents, or 0.36%, to $67.21 a barrel after climbing 3.1% previously.