The dollar nursed losses against most currencies on Wednesday amid some speculation the U.S. Federal Reserve could take steps to curb a recent rise in bond yields at its policy meeting.
Indian rupee has erased most of the day's gains and ended flat at 75.59 per dollar, amid volatile trade seen in the domestic equity market.
It opened 11 paise higher at 75.50 per dollar against previous close of 75.61. It traded in the range of 75.42 - 75.60.
At 14:05 IST, the Sensex was up 229.03 points or 0.67% at 34185.72, and the Nifty was up 55.20 points or 0.55% at 10101.90.
"The USD/INR spot has continued to remain range bound as there was no major catalyst to react to. Now the market's focus is on tonight FOMC stance and their outlook on US economy," said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.
"We don't expect a rate cut by Fed but it may provide a grim outlook and introduce more unconventional measures like yield curve control to keep the rates under control."
"In USD/INR spot 75 has been acting as a crucial support, a break of which is unlikely," he added.Oil prices fell on Wednesday after a rise in crude and fuel stockpiles in the United States revived fears about oversupply and falling fuel demand in the world's largest crude consumer amid the coronavirus outbreak.