FOMC Monetary Policy Meeting

Dollar closed at 63.5725 against its opening of 63.5900. Dollar pushed higher against a currency basket, but gains looked likely to remain limited as concerns over the Trump administration’s commitment to a strong currency weighed. US FOMC is scheduled to conduct their two-day monetary policy meet on Jan 30 and Jan 31, 2017. The dollar is also losing its relative yield attraction for investors. A faster rate of monetary tightening outside the U.S. would lessen the divergence between the Federal Reserve and other central banks.

The dollar found some support after U.S. GDP data showed that domestic consumption and capital spending remained strong even though the headline figure was weaker than expected due to a rise in imports. Asian stocks traded higher this morning following significant gains in US stocks in the last session, with major US indexes touch record highs, also Intel's strong earnings and guidance helped lift technology stocks. Indian shares open higher tracking Asian shares amid increased investor risk appetite. Investors would stay focus on budget announcement later this week.

BSE Sensex closed higher by 232.81 points to 36,283.25, while the Nifty 50 rose 60.75 points to settle at 11,130.40. 

INTERNATIONAL

Asian shares extended their bull run amid upbeat corporate earnings and strong global economic growth, while the dollar tried to bounce even as the White House continued to complain of "unfair" trade practices by competitors.

Japan's financial regulator plans to slap an administrative punishment on cyrptocurrency exchange operator Coincheck Inc on Monday, the top government spokesman said, after the firm lost 58 billion yen ($534 million) worth of NEM coins to hackers.

Gold prices dipped in Asia on Monday with a mild rebound in the dollar prompting some physical selling.

Dollar edged higher against the yen in early Asia with investors looking at continued overall weakness in the greenback sparked by comments last week from the US president and treasury and commerce secretaries that raised concerns of a currency war.

Crude oil prices opened slightly higher in Asia on Monday with the tailwind from a weaker dollar aiding sentiment.