Dollar is closed at 65.1900 against its opening at 65.2400. Dollar in the offshore market traded higher during European trades tracking the spike in spot pair on oil importers' demand while investors await the release of Federal Open Market Committee outcome. Likely overseas funds outflow from local stocks will support the pair. Also, oil prices traded up, on the back of perceived geopolitical risks to global supply and a rosier demand outlook from the International Energy Agency. 

Asian markets were weaker, as investors stayed cautious following the overnight pullback on Wall Street and ahead of a two-day Federal Reserve policy meeting. In Tokyo, the Nikkei 225 fell 0.91%, or 196.52 points, tracking the decline seen stateside overnight. The Hang Seng Index slipped 0.39% and on the mainland, the Shanghai composite shed 0.12% while the Shenzhen composite edged down by 0.39%.

BSE Sensex closed higher by 73.64 points at 32,996.76, while the Nifty 50 rose 30.10 points.

INTERNATIONAL

Asian shares fell  after investors took profits in high-flying U.S. technology shares on fears of stiffer regulation as Facebook came under fire following reports it allowed improper access to user data.

Oil prices edged up , lifted by tensions in the Middle East, although rising output in the United States and shaky stock markets put a lid on further gains.

Japanese trade minister Hiroshige Seko said on Tuesday that there was a high possibility Japan would be exempted from U.S. tariffs on steel and aluminum on per-item basis.

Euro held onto gains made the previous day when traders revived bets that the European Central Bank would raise interest rates sooner than previously thought.