• Spot rupee ended at 87.82/83 to a dollar level after opening at 87.84/85 level. The rupee appreciated further today as traders eye the US-India trade negotiations and also expectations of Fed rate cuts during this month end’s meeting. Equity market benchmarks ended today with about 1 gains.
• DXY is trading lower at 98.58 level as markets are pricing in a rate in this month end Fed meeting while there is no resolution seen for the standoff between President Trump and Senate Democrats over the government shut down.
• GBP remained above $1.34 after UK GDP data came in line with forecasts, providing some relief to Finance Minister Rachel Reeves ahead of the government’s November 26 budget. The UK economy grew 0.1 in August, rebounding from a 0.1 contraction in July, led by manufacturing, while services were flat for a second month and construction fell. However, an annual expansion of 1.3 is insufficient to offset the need for tax increases. On a three-month basis, GDP grew 0.3 in the period to August compared with the previous three months. Trade deficit in goods and services widened by £1.7 billion, reaching £5.2 billion in the three months to May.
• Trade data from Eurozone showed that its trade surplus reached €1 billion in August, a decline compared with €3 billion registered in the same month the year before and €12.4 bn. seen in July 2025. Both the Exports and Imports saw steep drop in August. EURUSD is trading steady at 1.1660 level.
• Market will be looking forward to the Supreme Court Judgement on cases against President Trump’s tariffs in the next few days.
• Important data releases scheduled today: US: Philly Fed Mfg. index; NAHB Housing Market index; Business inventories m/m;

Indian rupee surged sharply in early trading, rising to its strongest level in over a month at 87.78 per US dollar. This ongoing appreciation is mainly driven by a confluence of supportive factors, including expectations of upcoming Fed’s rate cuts along with positive trade talks between US & India. Going ahead, pair is expected fluctuate within the range of 87.55–88.05 levels, while domestic equity benchmarks traded about 0.4 higher, reflecting improved risk sentiment and strengthened investor appetite across both equity and currency markets.

DXY is trading lower at 98.52 level. There appears to be no end to the US government shut down as it enters the 15th day. This could shave a few basis points of the GDP growth and increase labour market stress. In addition, investors assessed recent trade developments and comments from Federal Chair Powell that reinforced expectations of continued interest rate cuts. Treasury Secretary Scott Bessant proposed a longer pause on high US tariffs on Chinese goods in exchange for Beijing delaying its planned restrictions on rare earth exports, offering some relief to investors after recent tensions