• Spot rupee ended at 87.93/94 to a dollar level after opening at 87.95/96 level. The rupee rose to an intraday high of 87.74/75 levels. Volumes were low due to Diwali holidays. Equity market benchmarks rose today and ended about 0.5 higher.
• DXY is trading steady at 98.46 level. Forex markets are range bound today in the absence of major data releases amid improved risk sentiment on signs of easing US-China trade tensions. Meanwhile, EURUSD is trading above 1.1650 level, as investors weighed the impact of S&P Global Ratings’ downgrade to A+ from AA- citing heightened risks to fiscal consolidation and persistent uncertainty surrounding government finances, despite the submission of the 2026 draft budget to parliament. From Germany, data showed Producer Prices dropped by 1.7 y/y in September following a 2.2 decline in August, which was the sharpest drop in 15 months, marking the seventh consecutive month of annual producer price declines.
• Meanwhile, investors are awaiting the delayed US inflation data due Friday for further insight into the Federal Reserve’s rate-cut trajectory. Excluding energy, producer prices rose 0.9, up from a 0.8 increase in August. On a monthly basis, the producer price index unexpectedly edged down 0.1 in September, missing expectations for a 0.1 increase, following a 0.5 decline in August, which was the sharpest monthly decline in four months.
• Meanwhile, traders await the delayed release of US inflation data on Friday.
• Important data releases scheduled today: US: CB Leading index m/m;

Indian rupee opened at 87.96 levels this morning and is likely to remain range-bound, as trading volumes are expected to be subdued due to Diwali holidays. Moreover, market participants are expected to stay on the sidelines, with Mumbai being closed for the next two days for Diwali observance. Despite lower activity in the currency market, equity benchmarks opened positively, trading approximately 0.75 higher in early session trades.