Abstract: We show that an isolated impurity in a spin singlet dx2-y2 superconductor generates a dxy order parameter with locally broken time-reversal symmetry. The origin of this effect is a coupling between the dx2-y2 and the dxy order parameters induced by spin-orbit scattering off the impurity. The signature of locally broken time-reversal symmetry is an induced orbital charge current near the impurity, which generates a localized magnetic field in the vicinity of the impurity. We present a microscopic theory for the impurity induced dxy component, discuss its spatial structure as well as the pattern of induced current and local magnetic field near the localized impurity spin.