The Rupee closed stronger on Tuesday, supported by dollar sales from exporters and modest foreign inflows while traders held onto caution ahead of the U.S. Federal Reserve’s policy decision later this week. The currency had risen to 89.8475 earlier in the session but further gains were capped by importers stepping in to lock in hedges at more favourable levels, traders said. The currency has declined about 5% in 2025 so far, bogged down by weakness in trade and foreign portfolio flows alongside the drag from a missing trade deal with the U.S. Deputy U.S. Trade Representative Rick Switzer will visit India on December 10-11, the Indian foreign ministry spokesperson said on Monday. Elsewhere, Asian currencies were trading mixed on the day while the dollar held steady against a basket of peers as investors awaited a closely watched Fed decision due on Wednesday. The dollar held steady on Tuesday ahead of an expected rate cut from the Federal Reserve, while the Aussie dollar was firmer after its central bank ruled out more easing. Markets are anticipating a rate cut from the Fed, and preparing for several more central bank decisions before the weekend. The U.S. dollar index , which measures the greenback's strength against a basket of six currencies, slipped 0.1% to 98.977. Nevertheless, markets believe policy easing from the U.S. central bank this week is a near-certainty, with attention turning to the outlook for the year ahead. Fed funds futures are pricing an implied 89.4% probability of a 25-basis-point cut at the Fed's two-day meeting starting on December 9, according to the CME Group's FedWatch tool. The yield on the U.S. 10-year Treasury bond was last trading at 4.1605%, down about 1 bps following a three-day rise in yields to the highest in almost three months. The European common currency was last trading up 0.1% at $1.1653. The Australian dollar strengthened after the Reserve Bank of Australia kept rates on hold, as markets counted down to the U.S. Federal Reserve's policy meeting later this week. The Australian currency advanced 0.3% to $0.6645 after the central bank held interest rates for a third consecutive month at 3.6%, as widely expected, and warned that a pickup in inflation could be persistent. The yen was last 0.1% down against the U.S. dollar at 155.82 yen. It initially strengthened slightly after the quake, which prompted evacuation orders and tsunami warnings that were downgraded to advisories hours later. The British pound was last 0.2% stronger at $1.33470, while the New Zealand dollar was up 0.3% at $0.57920. Oil prices steadied on Tuesday after falling 2% in the previous session, with investors keeping a close eye on peace talks to end Russia's war in Ukraine, concerns about ample supply and a looming decision on U.S. interest rates. Brent crude futures edged 22 cents higher, or 0.4%, to $62.71 a barrel at 1145 GMT. U.S. West Texas Intermediate crude gained 20 cents, or 0.3%, at $59.08 a barrel.......
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