In listless trading, the rupee fell back by six paise to end at 54.32 amid fresh dollar demand from importers ahead of the conclusion of US Fed's two-day meeting, where it is widely expected to expand economic stimulus programme. Around $175 million capital flows in Indian stocks, however, capped the rupee slide as importers, especially oil companies, stepped up dollar purchases, forex dealers said.
At the Interbank Foreign Exchange (Forex) market, the domestic unit resumed slightly lower at 54.29 from overnight close of 54.26. It later moved in a narrow 19-paise range of 54.15 and 54.34 before concluding at 54.32, showing a fall of six paise or 0.11%. On Tuesday, it had risen by 22 paise or 0.40%.
The dollar index was down by 0.10% against a basket of six major currencies amid widespread expectations that the US Federal Reserve policy makers will decide to unleash further stimulus.