• Spot rupee ended at 90.42/43 to a dollar level unchanged at the opening level. The rupee initially slipped to an intra day low of 90.56 level, but suspected RBI intervention saw the rupee recover to 90.2850. However, persistent dollar demand from importers saw the rupee lose some ground. Markets were also pessimistic about the delay in US-India trade deal. Equity market benchmarks ended about 0.5 higher.
• DXY is trading lower at 98.37 level today. USD is trading at lower levels after overnight sell off. From Europe, inflation numbers were largely steady. Spain inflation stood at 3 y/y in November, just below the 3.1 reported in October. On a monthly basis, the consumer prices advanced by 0.2, matching the monthly inflation rate from the preliminary report. In France, inflation came in at 0.9 y/y and 0.2 m/m in November versus October’s 0.2 decline. For Germany inflation rate reached 2.3 y/y in November matching preliminary estimate.
• GBPUSD is trading mostly steady after data showed UK GDP contracted by -0.1 m/m in October, undershooting expectations for a 0.1 gain and marking a third consecutive month of stagnation or contraction. The economy had already shrunk by -0.1 in September after flat growth in August, reinforcing concerns that momentum is fading as the year draws to a close. On a three-month basis, GDP fell -0.1 in the period to October compared with the previous three months.
• Important data releases scheduled today: No major data releases from US tonight.

Rupee opened lower at 90.43 levels, despite dollar weakness in international markets as market sentiment took a hit after Mexico announced 50 tariff on imports from countries in Asia, including India and China. India’s exports to Mexico have continued to be substantial, with estimates around $5.3 billion in goods, led by vehicles, machinery, electrical equipment, chemicals and metals. Equity market benchmarks traded about 0.35 higher in early trades.