Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
The Indian Rupee ended changed against the Dollar on Wednesday, as traders awaited the U.S. Federal Reserve's forecasts on inflation, unemployment and the likely path of interest rates.
The U.S. central bank is expected to maintain a status quo on rates and make no changes to its bond-buying programme.
Market participants will also be listening for any change in tone from Fed Chair Jerome Powell about whether the inflation is likely to be temporary or longer lasting.
The Rupee at 73.32 compared with 73.31 in the previous session. The unit had briefly slipped to an intraday low of 73.38 on importer buying dollars and further spike in crude oil prices.
The Dollar Index was steady on Wednesday afternoon trade in Asia.
Asian currencies and equities were mostly lower. The BSE Sensex fell 0.5% and had very little impact on the currency this Wednesday.
The one-year forward premium was at 3.46 rupees, against 3.44 rupees in the previous session.
Technically, the USDINR Spot pair ended above 100-Daily Moving Average at 73.28 levels and a sustained trade above will push the pair to $73.60-$73.70 levels. However, a break below could pull the pair to the supports at 73.20 and 73.05 levels.
Technically, the Dollar Index is sustaining above $90.40 level and a sustained trade above will push the Index to $91.04-$91.60 levels. Otherwise, a break below will pull the Index to the support at $90.05.