Dollar closed at 64.3200 against its opening of 64.1800. Dollar ended up on overseas fund outflows from local stocks amid caution ahead of the Federal Open Market Committee meeting minutes as investors remained focused on the upcoming two-day US Federal Reserve Open Market Committee meeting outcome. All eyes are on the FOMC meet outcome, market participants expect Fed to maintain a status quo. Federal Open Market Committee will kick off 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, the US NAHB Fargo Housing Market Index plunged to 64 in September from a downwardly revised 67 in August. Also, US President Donald Trump's cabinet is divided over where to set the limit on refugee admissions for the coming year, with the Homeland Security Department pushing to lower the cap to 40,000, and the State Department and Pentagon wanting to keep it at 50,000.
President Trump is expected to receive a final recommendation from the cabinet on Wednesday, with a final decision due by the start of the fiscal year on Oct 1.
Market participants do not anticipate an interest rate hike at the central bank's September meeting, but will be looking for more details on plans to unwind its balance sheet.
Furthermore, Bank of Japan, at its policy meeting Thursday, is widely expected to maintain its massive asset buying campaign.
BSE Sensex closes lower by 21 points to 32,402, while the Nifty 50 edged down 6 points to close at 10,148.
INTERNATIONAL
Asian shares wavered , bolstered by record highs on Wall Street but hobbled by uncertainty as traders waited on a Federal Reserve meeting for clues on U.S. monetary policy.
North Korean nuclear issue must be resolved peacefully, Chinese Foreign Minister Wang Yi told his Russian counterpart during a meeting at the United Nations, China’s Foreign Ministry said on Tuesday.
British Prime Minister Theresa May said she would press U.S. President Donald Trump this week about a trade challenge by Boeing Co that could endanger thousands of aerospace jobs in Northern Ireland.
Gold prices dipped in Asia as markets grow cautious ahead of Wednesday's with the details on the pace of unwinding its balance sheet awaited.
Crude oil prices fell in Asia ahead of industry estimates by the American Petroleum Institute (API) of refined product and crude stocks in the U.S.