Mumbai, Mar 21 The rupee ended little changed on Tuesday, as investors were wary ahead of a pivotal US Federal Reserve bank meeting decision, amid major economies grappling with a banking sector crisis.
The rupee ended at 82.65 per dollar, compared to its previous close of 82.63. It moved in a narrow 15 paisa range all day.
Initial dollar bids from large state-run corporates and lacklustre trading volumes ahead of the Fed meeting led to the rupee staying contained in a range, said two traders.
Heading into the risk event, traders said they built "slightly" long USD/INR positions as foreign exchange markets are shut in India on Wednesday.
Asian currencies were flat to marginally higher, tracking a sombre dollar index.
Focus shifts to the Fed decision, due on Wednesday, with investors going back to expecting a 25 basis point (bps) interest rate hike amid relative calm after a crisis emanating from Credit Suisse and U.S. mid-sized lenders had roiled financial markets over the past week.
Fed funds repricing has been quite volatile off late, and at one point on Monday it indicated higher chances of a pause than a hike, fuelled by global central banks pledging liquidity support in the wake of the banking crisis.
Clear direction is possible only from the Fed's commentary and the dot plot, said a foreign bank trader.