• Spot rupee ended at 90.74 to a dollar level after opening at 90.55level. The rupee depreciated further to an all-time low of 90.7925 level. However, modest dollar selling at higher levels contained further decline. Data released today showed that India’s WPI inflation remained in the negative territory as prices declined 0.32 y/y compared to -1.21 decline in October and 2.18 rise in November 2024. In other data release, India’s trade deficit in November narrowed to a five-month low $24.3 bn. against $42.3 bn. earlier in the year. Gold, coal and oil imports declined while exports to US was up 10 m/m to $6.92 bn. Exports rose to $38.13 bn. in November as against $34.48 billion in October, even as imports decreased to $62.66 billion from $76.06 bn. Elsewhere, India's services exports stood at $35.86 billion and imports at $17.96 billion, suggesting a trade surplus at $17.9 billion. Equity market benchmarks ended flat today.
• DXY is trading lower at 98.33 level today. FX markets were range bound today awaiting key data releases from the US this week. Meanwhile, data from Germany sowed Wholesale prices rose 1.5 y/y in November 2025, and up 0.3 m/m unchanged from October data. In other data, Eurozone Ind. Production rose 0.8 m/m in October surpassing expectations of 0.7 m/m growth.
• The Japanese yen rose toward 155 per dollar, hitting an over one-week high as investors prepared for the Bank of Japan’s policy meeting this week. The central bank is widely expected to raise its policy rate by 25 basis points to 0.75. Market attention will focus on Governor Kazuo Ueda’s post-meeting remarks for guidance on next year’s policy trajectory, with analysts anticipating the policy rate could reach 1 by July.
• Important data releases scheduled today: US: Empire State Mfg. index; NAHB Housing market index;

Rupee started fresh week lower at 90.55 levels compared to previous close of 90.43 levels. Markets are now looking forward to the yearend movements amid a heavy load of economic data from the US and Central Bank meetings. Equity market benchmarks are trading about 0.4 lower in early trades.

DXY is trading steady at 98.40 level. US Dollar made a failed attempt to recover towards the end of the week despite verbal support from Fed officials Jeffrey Schmid and Austan Goolsbee who defended their dissent to last week’s Fed meeting.