Rupee closes flat in volatile trading session, ahead of Fed policyThe rupee closed a touch lower on Tuesday as jitters ahead of the US Federal Reserve policy outcome meant a volatile trading session.That was reflected in domestic bourses, too, with the Sensex snapping a five-day winning run and sinking over 700 points as investors' focus shifted towards the upcoming US Federal Reserve meeting.Besides the uncertainty over the conflict in Ukraine and heavy selling in domestic equities, continued capital outflows has weighed on the currency.At the interbank foreign exchange market, the PTI said the rupee opened strong at 76.40 against the US dollar.
However, it pared gains later.
During the day, it moved in the range of 76.32 and 76.68.The energy-sensitive currency was last at 76.60 against the dollar, down 6 paise from the previous close of 76.54 against the greenback.With the dollar likely to reign supreme as the Federal Reserve is all set to lift interest rates when it meets this week, analysts will watch closely for cues on the rate hike trajectory, including the pace and size of future hikes.The energy-sensitive rupee lost its allure even after oil prices dipped nearly 6 per cent to $100.98 a barrel.Brent crude oil futures Crude extended their decline for the second day, falling to a two-week low early on Tuesday.International crude oil prices fell sharply, hoping that negotiations between Russia and Ukraine scheduled to resume on Tuesday may resolve the crisis.
The fourth round of talks started on Monday but remained inconclusive with no significant breakthrough.