Dollar closed at 64.2600 against its opening at 64.2400. Dollar ended flat as it breached fresh two-month high during late morning trades Wednesday on overseas fund outflows from local stocks amid corporate buying while investors remain focused on the Federal Open Market Committee monetary policy meeting outcome. All eyes are on the FOMC meet outcome, investors expect Fed to maintain a status quo today. Federal Open Market Committee will end its two-day meeting later today. Investors do not anticipate an interest rate hike by the Fed, but focus on more details regarding the unwind of its balance sheet. On the US economic front, new residential construction unexpectedly dropped in the month of August, reported the Commerce Department on Tuesday. The report said housing starts fell by 0.8% to an annual rate of 1.180 million in August from a revised 1.190 million in July.
The report also said building permits, an indicating of future housing demand, rose by 5.7% to a rate of 1.300 million in August from a rate of 1.230 million a month prior. A report released by the Labour Department on Tuesday showed a rise in US import and export prices in the month of August. The Labour Department said imports prices increased by 0.6% in August after plunging by 0.1% in July.
BSE Sensex closed lower by 2 points to 32,400, while the Nifty 50 inched lower by 6.40 points to 10,141..
INTERNATIONAL
Asian stocks were mostly steady after Wall Street again rose to record highs, although movements were limited as a wait-and-see mood prevailed before the Federal Reserve reveals its monetary policy stance later in the day.
Japanese Prime Minister Shinzo Abe is set to delay the timing for balancing a primary budget from the current fiscal 2020 to later in the decade, sources told Reuters on Wednesday, calling the government's fiscal discipline into question.
Gold prices gained in Asia on Wednesday with the Fed policy review expected to follow a well-telegraphed script on interest rates and reducing the balance sheet, though some investors are looking for language that suggests a shift to a more dovish outlook.
Crude oil prices gained in Asia on Wednesday after painted an upbeat picture on and refined product figures.