On Wednesday , The Domestic Unit likely to commence with positive note between 73.48 - 73.58 levels as greenback languished near 2 1/2-year lows on Wednesday as progress toward a massive U.S. government spending bill and COVID-19 relief measures whetted risk appetite, sapping demand for the safest assets.
Violence at a Wistron Corp factory in southern India is likely to stall the company's and its client Apple Inc's drive to expand local manufacturing, while forcing the government to redouble efforts to encourage foreign investors.
India and Britain will push negotiations on trade ties, their foreign ministers said after talks in New Delhi on Tuesday, as both countries seek to restart economies battered by the coronavirus pandemic.
Soured loans and weak capital positions mean Indian banks cannot cut their interest rates in step with the central bank's main policy rate, reducing the effectiveness of monetary policy, the Reserve Bank of India said in a working paper on Tuesday.
INTRADAY RANGE - 73.21 ( 73.42 - 73.68 ) 73.82
MAJOR FX
The Federal Reserve will continue to suggest that the liquidity spigot remain wide open to support the economy amid a bleak outlook.
The Fed's policy statement will be accompanied by a fresh set of economic projections that will likely confirm expectations that the ultra-low interest rate environment will persist for at least another year.
The U.S. Chamber of Commerce urged the U.S. government on Tuesday not to impose tariffs on Vietnam over the alleged undervaluation of its currency, saying Vietnam did not meet the U.S. Treasury's three-part test for unfair currency practices.
The British pound held on to more than 1% of gains made on Tuesday following a report that an elusive Brexit trade deal may now be close, even as British Prime Minister Boris Johnson repeated that the most likely outcome of talks was no deal.
Rising UK Unemployment Fails to Prevent Pound Euro (GBP/EUR) Exchange Rate Gains A smaller-than-expected uptick in the UK unemployment rate helped to keep the Pound to Euro (GBP/EUR) exchange rate on a positive footing.
The Canadian dollar continues to have a quiet week, as the US dollar has steadied and the currency markets are calm. Currently, USD/CAD is trading at 1.2699, Canadian data was mixed. Housing Starts climbed to 246 thousand in November, up from 215 thousand beforehand.
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