MUMBAI: The Indian rupee today snapped its two-session uptrend against the American currency, falling 18 paise to close at 62.34 on fresh dollar demand from banks and importers.
The dollar was trading up in global markets on caution ahead of the US Federal Reserve's January policy meeting minutes release.
The rupee resumed lower at 62.20 per dollar as against on Monday's level of 62.16 per dollar at the Interbank Foreign Exchange (Forex) Market. It dropped further to 62.35 before ending at 62.34, a loss of 18 paise or 0.29 per cent.
The rupee had gained 15 paise or 0.24 per cent in the previous two sessions.
The rupee hovered in a range of 62.19 per dollar and 62.35 per dollar during the day.
"We believe with the overnight risk of Fed meet minutes release due tonight, investors will not want to be on the wrong side of the market when it reopens on Friday. So, volumes remained low on Wednesday ahead tonight FOMC minutes and tomorrow's holiday. Indian currency derivative markets are closed tomorrow for a local holiday," said Admisi Forex India Pvt Ltd, Director, Suresh Nair.
The dollar index was up by 0.09 per cent against a basket of its major global rivals.
Asian equities ended higher today as pessimism over the Greek debt situation receded to some extent.
In the New York market, the US dollar were modestly higher against its major rivals in early trade.
Meanwhile, the Indian benchmark Sensex ended higher by 184.38 points, or 0.63 per cent, to close at 29,320.26.
Pre Lunar Holiday iron ore recovery and steady scrap prices raise sentiments among India's secondary sector market players temporarily
Indian secondary steel market has been struggling to revive during the week which has been belied experts. Even the rally has not been steep it certainly has raised eyebrows coming at a time when the fundamentals remain unchanged.
On talking to experts Steel Guru come to know that the recent rally in international iron ore levels and resistance in scrap levels have created temporary optimism. However it is unlikely to sustain given the demand and liquidity crunch plaguing the market.
The price rally was across all products except structural steel declining at Ludhiana and Delhi but rally handsomely by INR 800 per tonne at Mumbai.
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