FOMC News

According to BofAML, the RBI has bought about USD 16 billion in the spot market since April.

Gold prices hit a two-week high on Monday as the dollar slumped to near 6-week lows after the US Federal Reserve`s dovish outlook on the pace of rate increases this year continued to disappoint dollar bulls. 

Market expectations of an interest rate hike by the US Federal Reserve later on Wednesday have heightened sharply following strong employment data released last week.

Indian equity markets rallied during the past week ended Friday on positive global clues, strength in rupee and fresh inflows of foreign funds.

The RBI may consider chopping interest rate in the coming three months as inflation may slip below 5 per cent during September-December period, before inching up in the following quarter, says a report.

Healthy monsoon rains, more economic reforms and a firm rupee are expected to support the equity markets` upward trajectory in the coming week.

The US central bank kicked off a policy meeting that ends Wednesday amid speculation about when the Federal Reserve will raise US interest rates - a move that would impact both advanced and emerging markets like India.

The dollar remained steady against the yen on Wednesday as investors waited for a policy announcement by the US Federal Reserve.

Gold edged up on Wednesday after hitting a more than four-month low in the previous session, while traders remained cautious ahead of the conclusion of a Federal Reserve meeting that may stoke expectations for a mid-year hike in U.S. interest rates.

Gold eased slightly to $1,234.05 an ounce Tuesday, but remained close to a four-week peak of $1,237.30 hit on Monday, when the metal gained over 1 percent.