Federal Reserve may not stir the rate scenario

It is anticipated that the Federal Reserve would keep interest rates unchanged in its upcoming monetary policy. With Federal Reserve’s monetary policy meeting coming to an end on Wednesday, the US dollar was trading at its 13-month low level ahead of Fed’s decision on benchmark interest rates.
 
The dollar index fell to its record low level of 93.63 in Tuesday’s trading session. Inflation rates in US have been sluggish, putting pressure on the American currency. This is leading to uncertainty among investors on whether the Fed will increase benchmark interest rates again. According to economists, the Fed’s benchmark lending rate may remain in a target range of 1% to 1.25%.
 
If the Fed decides to raise interest rates then it would primarily depreciate Indian rupee against USD. Gold and silver were trading in negative territory in the Indian markets ahead of the Fed’s decision. MCX Gold was trading down by 0.39% or Rs 112, at Rs 28,366 per 10 gram as of 1050 hours, while MCX Silver was trading down by 0.86% or Rs 328, at Rs 37,961 per 1 kg.