The 1-month non-deliverable forward indicated that the rupee will open at 87.14-87.16 to the U.S. dollar compared with 87.0675 in the previous session.
The dollar index slipped in thin trading as investors focused on U.S. inflation data later this week, while the yen slipped to near 34-year lows versus the greenback as traders remained alert for any potential action from Japanese authorities to support the weakening currency.
The three major US stock market indexes were lower after paring initial losses, while the greenback strength against a basket of world currencies waned a bit after the first hour of trading.
Spot gold lost 0.2% to $2,073.32 per ounce by 12:12 p.m. ET (1712 GMT), after rising as high as $2,088.29 earlier, the most since Dec. 4, when bullion hit its all-time peak.
The US central bank announced in a policy statement that it had decided to hold the policy rate steady in its current 5.25% to 5.50% range for now.
European stocks were down 0.2% after hitting a 17-month high on Thursday
Hawkish comments from Federal Reserve officials about the possibility of further rate hikes sent the U.S. dollar to a two-month high.
Earnings are expected to decline 4.7% from the year-ago period, an improvement from the 5.1% decline seen on April 1.
The rupee is seen around 82.75-82.80 per dollar in early trades versus its previous close of 82.8475.
Spot gold inched up 0.2% to $1,758.94 per ounce, as of 0337 GMT. U.S. gold futures rose 0.3% to $1,775.10.
EU leaders agreed in principle to cut 90% of oil imports from Russia, the bloc's toughest sanction yet on Moscow since the invasion of Ukraine three months ago.
After hitting three-year peaks earlier in the session just off the 3% mark, benchmark 10-year yields eased 4 basis points to 2.8744%.
Traders were waiting for a European Central Bank meeting later in the day, to see if it was as hawkish as others have been.
Spot gold was little changed at $1,898.63 per ounce, as of 0147 GMT, after scaling its highest since June 1 at $1,913.89 per ounce on Tuesday. U.S. gold futures shed 0.3% to $1,901.90.
U.S. yields rose on Tuesday as bond investors geared up for interest rate hikes from the Federal Reserve by mid-year to curb stubbornly high inflation.
The greenback rose as high as 115.395 yen for the first time since Nov. 25, as long-term Treasury yields leapt 12.5 basis points overnight to touch 1.6420% for the first time since Nov. 24.
Despite the hawkish pivot, US stocks have stayed buoyant around record-high levels, while yields on US Treasuries remain stubbornly low
Spot gold was up 0.6% at $1,852.39 per ounce by 0318 GMT, after hitting its highest since Feb. 10 earlier in the session. U.S. gold futures jumped 0.7% to $1,851.10.
Spot gold was down 0.2% to $1,766.32 per ounce by 0245 GMT, after hitting its highest since Feb. 25 at $1,789.77 on Monday.
Spot gold was up 0.3% at $1,731.75 per ounce by 0300 GMT. U.S. gold futures were up 0.4% at $1,732.70 per ounce.
Vibhav Kapoor of IL&FS feels it is important for earnings growth to come through for the market. He prefers private banks and NBFCs as PSU banks are yet to grow out of many issues.
Speaking to CNBC-TV18 Neelkanth Mishra of Credit Suisse said that Donald Trump‘s victory has led to external readjustments in countries like Brazil and Indonesia.
Discussing the performance of Nifty in the last few months, Robert Parker of Credit Suisse feels the current correction is market is attractive for investors and that the economy will start performing better in next six months.
The sentiment has turned negative on rupee but it won't depreciate very sharply, says Khoon Goh, Senior Forex Strategist, ANZ Research. He sees the rupee touching the level of 65 to a dollar by end of this year.
Morgan Stanley expects volatility in the current quarter which is likely news heavy with global developments around oil, US yields, Fed policy, global growth data, and domestic news flow