The rupee fell on Wednesday as dealers remained cautious ahead of the Federal Reserve's tapering decision, giving up gains won after the Reserve Bank of India surprised investors by keeping rates unchanged.
The RBI kept talking tough on inflation despite holding its policy interest rate unchanged, saying it will be ready to act even if the country
struggles to raise its low growth rate.
The partially convertible rupee closed at 62.09/10 per dollar compared with Tuesday close of 62.01/02, a fifth day of losses out of six. It rose to a high of 61.82 immediately after the Reserve Bank of India's decision, reflecting the jump in shares. Shares ended 1.2 percent higher.
In the offshore non-deliverable forwards, the one-month contract was at 62.49, while the three-month was at 63.28.
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The rupee fell on Wednesday as dealers remained cautious ahead of the Federal Reserve's tapering decision, giving up gains won after the Reserve Bank of India surprised investors by keeping rates unchanged.