Dollar closed at 64.2050 against its opening at 65.2300. Dollar ended little changed Wednesday as demand from oil importers and strong dollar more than offset the likely overseas funds inflow into local stocks.Dollar open higher on demand from oil importers amid globally strong dollar ahead of Federal Open Market Committee policy statement later today.  Dollar inched up ahead of the conclusion of Federal Open Market Committee monetary policy meet in anticipation of first interest rate hike of 2018. Investors will look out for signs that the central bank may tighten monetary policy at a faster clip later this year, forecasting four rate hikes rather than three times this year. Federal Open Market Committee will conclude its two day monetary policy meet, with the new Fed Chair Jerome Powell announcing the central bank's stance on bench-mark interest rate and also future outlook.

Also, US lawmakers neared agreement on a massive government spending bill that Congress hopes to pass by Friday, as congressional leaders worked to narrow their differences on issues such as President Donald Trump's border wall. Asian markets traded cautiously higher, with markets focused on the Federal Reserve after it kicked off its March meeting. Gains in the region took cues from the overnight move higher on Wall Street after a pull back earlier in the week.

BSE Sensex closed higher by 139.42 points at 33,136.18, while the Nifty 50 rose 30.90 points to close at 10,155.25.

INTERNATIONAL

Asian equities traded higher in morning trade on Wednesday as investors await the Federal Reserve’s decision on U.S. rate hikes this year.

Gold prices rose on Wednesday as the dollar fell as investors await the outcome of the U.S. Federal Reserve’s meeting this week for signs of the pace of monetary tightening, which could limit the demand for bullion going forward.

Oil prices rose on Wednesday, lifted by tensions in the Middle East and healthy demand, although rising U.S. output continued to weigh on markets.

A New Zealand court rejected on Wednesday internet entrepreneur Kim Dotcom’s application for former U.S. President Barack Obama to appear in court in relation to a damages claim over his defunct Megaupload streaming website.