The Rupee closed weak on Wednesday, ending a session of back-and-forth price action shaped by portfolio flows, likely maturity of positions in the non-deliverable forwards market and caution ahead of the Federal Reserve's policy decision. Early gains sparked by likely inflows tied to equity fundraising faded as dollar bids picked up after noon, a trader at a private bank said. The Fed is widely expected to cut rates by 25 basis points, with traders set to parse policymakers' commentary and rate projections. Investors have scaled back expectations for 2026 cuts on persistent inflation concerns and signs of a more resilient U.S. economy. Money markets are pricing in about two more Fed cuts next year, on top of the one expected later on Wednesday. Odds of a January 2026 cut stand near 21%. Risks of a hawkish tilt at the Federal Reserve also contributed to pegging back dollar-rupee far forward premiums with the 1-year implied yield down 4 basis points at 2.54%. he U.S. dollar edged down versus the euro and the yen on Wednesday as investors awaited the Federal Reserve policy meeting later in the day which is expected to deliver a so-called hawkish rate cut. Strong economic data and comments from ECB policymaker Isabel Schnabel - who said a rate hike was more likely than a cut - led investors on Monday to price out a European Central Bank rate cut in 2026 and assign more than a 50% chance of a hike in March 2027. The euro rose 0.10% to $1.1640 as investors focused on its gap with U.S. bond yields and saw little chance of a significant drop in euro zone rates in the near term. The yen was up 0.12% at 156.72 per dollar, after a 0.6% fall towards the 157 level in the previous session. Against the euro, the Japanese currency sank to a record low overnight at 182.64 and was last down 0.05% at 182.00. “The yen should find sufficient support ahead of the upcoming BoJ decision, but its policy space will be shaped as much by domestic politics and fiscal aspects as by global (rate) differentials,” said Geoff Yu, EMEA macro strategist at BNY. Sterling edged up against the dollar and was roughly unchanged versus the euro as investors braced for the Federal Reserve policy meeting outcome due later in the session and data on British economic growth on Friday. The pound rose 0.10% versus the dollar at $1.3313. It hit $1.3385 last week, its highest since October 21. The currency has added around 1% since finance minister Rachel Reeves delivered the budget on November 26. Gold prices edged lower on Wednesday as investors booked profits ahead of the U.S. Federal Reserve's interest rate decision and Chair Jerome Powell's remarks later today, while silver hovered below record high levels. Spot gold was down 0.3% at $4,198.28 per ounce at 0948 a.m. ET (14:48 GMT). U.S. gold futures for February delivery inched 0.2% lower to $4,227.40 per ounce. Spot silver fell 0.2% to $60.56/oz, after hitting an all-time high of $61.61 earlier in the session. Oil prices steadied on Wednesday after declines of about 1% in the previous session, as investors watched for progress in Russia-Ukraine peace talks and awaited a decision on U.S. interest rates. Brent crude was up 2 cents at $61.96 a barrel by 1400 GMT while U.S. West Texas Intermediate crude gained 3 cents to $58.28.......