Mumbai: The rupee closed almost steady on Wednesday as demand for dollars from importers to meet month-end bills offset a second day of gains in domestic shares, which had eased concerns over capital outflows.
The partially convertible rupee closed at Rs48.93/94 per dollar, marginally stronger than Tuesday’s close of Rs48.94/95. It hit Rs48.78 earlier in the session.
“The rupee was very range bound today, there were not many triggers for the market,” said V. Kumar, chief dealer at State Bank of Travancore. “The FOMC meet scheduled today could create some fresh volatility, if the comments are anything to go by.”
Domestic markets rose 2.8% up on Wednesday, as rebounding global markets calmed risk aversion concerns.
The euro gained against the dollar and the yen on Wednesday, helped by rising equities and easing risk aversion, with focus on the meeting of US rate-setters later in the day.
The conclusion to the Fed’s two-day meeting will provide the main focus for currency markets worldover.
Month-end demand for the dollar during late trade reversed most early gains for the rupee.
Refiners are the largest buyers of dollars in the domestic currency market with their demand tending to peak at the end of each month.