The Indian rupee on Wednesday ended unchanged against the U.S. dollar at 61.41 ahead of the outcome of U.S. Federal Reserve’s policy meeting.

The rupee resumed lower at 61.50 per dollar as against the last closing level of 61.41 per dollar at the Interbank Foreign Exchange (Forex) Market. It moved down further to 61.52 per dollar on initial dollar demand from banks on the back of higher dollar overseas.

However, the domestic currency recovered from initial losses and firmed up to 61.2900 per dollar on heavy selling from banks and exporters due to persistent foreign capital inflows into equity market. It ended at yesterday’s closing level of 61.41 per dollar.

The rupee hovered in a range of 61.29 and 61.52 per dollar during the day.“Rupee remained volatile...investors remained cautious before the outcome of FOMC meeting which concludes tonight,” said Admisi Forex, Director, Suresh Nair.

The dollar index was up by 0.10 per cent against a basket of six major global rivals.The US dollar climbed in the global market versus its counterpart in Singapore after the Asian nation unexpectedly eased monetary policy.

Veracity Group, CEO, Pramit Brahmbhatt, said, “The trading range for the Spot USD/INR pair is expected to be within 61.00 to 61.80.

The Indian equity benchmark Sensex moved down by 11.86 points, or 0.04 per cent, to end at 29,559.18.Meanwhile, premia eased on fresh receipts by exporters.

The benchmark six-month premium payable in June ended lower at 190.5-192.5 from 192-194 paise yesterday while forward contracts maturing in December ruled steady at 398-400 paise.

The Reserve Bank of India fixed the reference rate for dollar at 61.4105 and for Euro at 69.8237.The rupee dropped further against the pound to 93.40 per pound from 92.58 previously and also fell against the euro to 69.72 per euro from 69.17.The rupee also moved down further to 52.14 per 100 yen from 52.03 previously.

Source:- thehindu.com