Spot rupee ended at 88.66/67 to a dollar level after opening at 88.42/43 level. Talk of RBI intervention before the day’s opening led USDINR slide towards 88.41 level before stabilizing around 88.65 level.

DXY is trading steady at 99.96 level in the absence of major data releases today. Remarks from Fed officials are giving mixed signals on the future interest rate path. While Fed Chair, Powell indicated no further cuts in 2025, Fed Governor Lisa Cook indicated a potential rate cut in Dec. Meanwhile San Francisco Fed Governor Mary Daly said that she would keep an open mind.

Sterling slipped lower to 1.3070, weighed down by political pressure. UK Finance Minister stated that she would take necessary steps to address high inflation and elevated interest rate, raising the expectation of increase in taxes. Japanese Yen strengthened to 153..52 on renewed verbal intervention from officials Finance Minister Satsuki Katayama issued another sharp warning, saying she was observing “one-sided and rapid moves” in the currency market and that authorities would monitor developments with a “high sense of urgency.” The remarks revived speculation that Tokyo could step in to curb excessive Yen weakness if volatility persists. Katayama’s statement effectively overshadowed comments from Prime Minister Sanae Takaichi, who reiterated that Japan has yet to achieve the BoJ’s 2 inflation target on a sustained basis alongside wage growth — implying that she favors maintaining loose monetary policy. Data released earlier in the day showed Japan's manufacturing performance slipped in October, with the S&P Global Japan Manufacturing Purchasing Managers' Index (PMI) dropping from the previous month's 48.5 to 48.2. Meanwhile, EUR extended its decline to trade at 1.1505.

Important data releases scheduled today: US: RCN/TIPP Economic Optimism index; JOLTS Job Openings

Rupee opened higher at 88.42 levels compared to previous close at 88.79 level, with the RBI rumoured to have intervened through the NDF markets preopen. Meanwhile, domestic equity markets saw moderate gains as key benchmarks traded higher on positive investor sentiment.

DXY is trading higher at 99.93 level as PMI numbers from the S&P Global is showing positive trend while the ISM Mfg. PMI shows contraction in the sector. The dollar remained firm versus most of the rival currencies despite a worse than expected ISM Mfg. PMI numbers indicating that the manufacturing sector is contracting at a faster pace.