TODAY Wednesday,17th   September , 2025

USD/INR:

The Indian rupee touched a more than two-week high on Wednesday, boosted by a slump in the U.S. dollar ahead of an expected rate cut by the U.S. Federal Reserve and optimism over U.S.-India trade talks.The rupee touched a peak of 87.73 against the U.S. dollar, its strongest since August 29, in early trading and was last up 0.3% at 87.7525 as of 10:50 a.m. IST.

Against a basket of peers, the dollar was last at 96.69, pinned near its lowest level since early July after slumping 0.7% in the previous session.The rupee's move on Wednesday has been largely tracking weakness in the dollar and positive sentiment on account of trade talks between India and the U.S., a senior trader at a Mumbai-based bank said.

MAJOR WORLD CURRENCIES:

USD:

GBP/USD:

GBP/USD loses ground after two days of gains, trading around 1.3640 during the Asian hours on Wednesday. The Pound Sterling (GBP) inches lower against the US Dollar (USD) ahead of the United Kingdom’s (UK) Consumer Price Index (CPI) and Retail Price Index data. Focus will shift toward the US Federal Reserve (Fed) policy decision due later in the day.

The UK Consumer Price Index report is expected to show that headline inflation rose to 3.9% year-over-year in August from 3.8% prior. Meanwhile, the monthly inflation is expected to reach 0.3% from 0.1%. Signs of inflationary pressures accelerating would boost hopes that the Bank of England (BoE) will keep interest rates on hold at 4% on Thursday.

The GBP/USD pair may regain its ground as the US Dollar (USD) could weaken amid rising likelihood of multiple Federal Reserve (Fed) interest rate cuts, with strong retail sales and labor data outweighing hotter inflation. Additionally, Morgan Stanley and Deutsche Bank projected 25-basis-point reductions at each of the Fed’s meetings in September, October, and December.

EUR/USD:

The EUR/USD pair loses momentum near 1.1855, snapping the four-day winning streak during the Asian trading hours on Wednesday. Nonetheless, the potential downside of the major pair might be limited, as economists expect the Federal Reserve (Fed) to deliver a 25 basis points (bps) rate cut at the conclusion of its two-day meeting on Wednesday.

The Fed is widely expected to lower its key lending rate in the range of 4.0% to 4.25%, the lowest level since late 2022. The probability of a 25 bps cut stands at 96%, according to CME FedWatch, which relies on 30-day Fed Funds futures prices to determine the likelihood. There's only a 4% chance of a jumbo cut of 50 bps. 

Gold:

Gold (XAU/USD) sticks to modest intraday gains near the all-time peak touched earlier this Tuesday, though it remains below the $3,700 mark through the first half of the European session. The growing conviction that the US Federal Reserve (Fed) will lower borrowing costs this week drags the US Dollar (USD) to its lowest level since July 7 and continues to benefit the non-yielding yellow metal. Apart from this, geopolitical risks stemming from the intensifying Russia-Ukraine war turn out to be another factor driving flows towards the safe-haven commodity.

The XAU/USD bulls, however, seem reluctant to place fresh bets amid extremely overbought conditions and might opt to move to the sidelines ahead his week's central bank event risks. The focus, meanwhile, will be on the outcome of a two-day FOMC policy meeting on Wednesday and the updated economic projections. Apart from this, Fed Chair Jerome Powell's speech during the post-meeting press conference will be scrutinized for cues about the future rate-cut path, which will play a key role in influencing the USD price dynamics and the precious metal.

USD/INR Cash/Tom/Spot Levels: (in Paisa)

(Updated as on 17^th  September , 2025 @ 09.00am)

 Cash/Tom:   0.10/1.00         Cash/Spot:0.20/2.00

 Tom/Spot:   0.10/1.00           Spot/Next: 0.30/3.00

Cash Date:    17.09.2025

Tom Date:      18.09.2025

Spot Date:     19.09.2025

Outlook for the day 17^th   September: Rupee expected to trade in range of 87.75 to 87.95

MAJOR WORLD CURRENCIES: as on (16^thSeptember, 2025)

Foreign Currencies

Updated:17:30 hrs.(12:00 GMT) on 16^h September 2025

Precious Metals

Updated:17:30 hrs.(12:00 GMT) as on 12^th September 2025

Stock Indices

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