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WEDNESDAY - USDINR FIRM , ALL EYES ON FOMC !!

USDINR likely to commence trading with firm note despite greenback was down on early Asia, with investors fine-tuning their positions ahead of a U.S. Federal Reserve policy meeting.

  • Rupee opened on a strong note at 73.37/38, but lost ground during the day and finally closed at 73.6450 against greenback, registering a fall of 16 pips over its previous close of 73.48. During the session, the rupee touched an intraday high of 73.31 and a low of 73.74/75 against the greenback.

  • From deploying mules to large transport aircraft, India's military has activated its entire logistics network to transport supplies to thousands of troops for a harsh winter along a bitterly disputed Himalayan border with China.

  • China is inoculating tens of thousands of its citizens with experimental corona-virus vaccines and attracting international interest in their development, despite expert concerns over the safety of drugs that have not completed standard testing.

INTRADAY RANGE - 72.98 ( 73.41 - 73.84 ) 74.15


GLOBAL OUTLOOKS

  • The Fed is due to announce its decision at 1800 GMT Wednesday, followed by a news conference from Powell.

    • The Fed meeting comes as U.S. lawmakers remain at an impasse over a new stimulus package amid lingering concerns about the recovery of the world's largest economy from the corona-virus pandemic.

  • Asian shares rose extending a rally driven by upbeat Chinese and U.S. economic data.

  • Dollar, U.S. yields and gold held steady as investors awaited the Federal Reserve's view on the economy at its policy meeting.

  • Investors also await Japan's parliamentary approval of Yoshihide Suga as the country's next prime minister on Wednesday. Suga will then form a new cabinet.

  • World Trade Organization found on Tuesday that the United States had breached global trading rules by imposing multi-billion dollar tariffs in President Donald Trump's trade war with China, a ruling that drew anger from Washington.

  • Oil prices jumped as a hurricane disrupted U.S. offshore oil and gas production and as U.S. stockpiles fell.

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