Dollar/rupee closed at 68.82 against its opening of 69.04 . Dollar in both offshore and onshore markets traded down during afternoon trades Wednesday on overseas inflows into the local stocks. Also, post clarification from the governor of Reserve Bank of India on further FX swap window eased tension and stopped panic led dollar buying in the spot.
Reserve Bank of India's Governor Shaktikanta Das clarified on Tuesday the forex swap pan has been well received but at this point it can't be said whether the facility will be repeated.
Adding to this, short covering after yesterday's sharp pull back of dollar/rupee would also support demand for the greenback.
The greenback traded firm against other major currencies on ahead of FOMC interest rate decision later today following its two day monetary policy meeting.
Market participants are expecting the dovish outlook on monetary policy and betting on unchanged interest rate decision from Federal Reserve. Also the central bank will be affirming its commitment to "patient" monetary policy.
Crude oil futures trading down from four months high on global economic growth concerns, weighing the crude oil prices. However, the supply cut by OPEC and US sanctions with Venezuela and Iran supporting the oil price.
Asian shares traded lower Wednesday morning on US-China trade uncertainty, as Chinese negotiators are worried as they have not received assurance on the tariffs imposed on Chinese good s would be lifted.
Sensex ends flat with 20 components in the red.