Rupee ends flat at 72.55 ahead of US Fed policy decision

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Mumbai, Mar 17 (PTI) The rupee on Wednesday closed flat at 72.55 against the US dollar in a restricted trade ahead of the final outcome of the US Federal Reserve meeting.

Losses in the domestic equity markets and a strengthening dollar against major currencies overseas weighed on the rupee sentiment, forex dealers said.

Market participants were cautious ahead of the final decision of the Federal Reserve's meeting on Wednesday.

Though the US Fed is expected to keep interest rates unchanged, investors are focusing on its commentary about the US economy and its predicted path of interest rate movements going forward.

'Rupee traded little weak ahead of the Fed policy which can give hints of strengthening of the US economy. Levels in which rupee can range is between 72.40-72.90 in coming sessions,' Jateen Trivedi, Senior Research Analyst at LKP Securities, said.

At the interbank forex market, the rupee opened almost flat at 72.56 against the greenback and witnessed an intra-day high of 72.51 and a low of 72.62. It finally ended unchanged at 72.55 against the American currency. The dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.03 per cent to 91.91. Brent crude futures, the global oil benchmark, fell 0.82 per cent to USD 67.83 per barrel. On the domestic equity market front, the BSE Sensex ended 562.34 points or 1.12 per cent lower at 49,801.62, while the broader NSE Nifty fell 189.15 points or 1.27 per cent to 14,721.30. Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 2,625.82 crore on Wednesday, according to exchange data. PTI BAL MR