Rupee snaps two-session uptrend, down 18 paise

The Indian rupee on Wednesday snapped its two-session uptrend against the American currency, falling 18 paise to close at 62.34 on fresh dollar demand from banks and importers.

The dollar was trading up in global markets on caution ahead of the US Federal Reserve's January policy meeting minutes release.

The rupee resumed lower at 62.20 per dollar as against on Monday's level of 62.16 per dollar at the Interbank Foreign Exchange Market.

It dropped further to 62.35 before ending at 62.34, a loss of 18 paise or 0.29 per cent.

The rupee had gained 15 paise or 0.24 per cent in the previous two sessions.

The rupee hovered in a range of 62.19 per dollar and 62.35 per dollar during the day.

"We believe with the overnight risk of Fed meet minutes release due tonight, investors will not want to be on the wrong side of the market when it reopens on Friday.

"So, volumes remained low on Wednesday ahead tonight FOMC minutes and tomorrow's holiday.

"Indian currency derivative markets are closed tomorrow for a local holiday," said Admisi Forex India Pvt Ltd, Director, Suresh Nair.

The dollar index was up by 0.09 per cent against a basket of its major global rivals.

Asian equities ended higher today as pessimism over the Greek debt situation receded to some extent.

In the New York market, the US dollar were modestly higher against its major rivals in early trade.