U.S. Markets closed

Rupee trading rangebound ahead of Fed decision

A man exchanging damaged Indian currency counts 100 rupee notes along a roadside in Kolkata August 30, 2013. REUTERS/Rupak De Chowdhuri/Files

Reuters Market Eye - The rupee is trading at 63.15/16 versus its Tuesday's close of 63.37/38, tracking losses in the dollar versus most other Asian currencies but choppiness is likely to prevail ahead of the U.S. Federal Reserve's two-day policy meeting outcome.

Most Asian currencies stronger.

Traders say market participants are waiting on the sidelines and only covering flows as they prefer to be light ahead of the Fed decision.

Whether and by how much the Fed chooses to taper its $85 billion monthly asset purchase programme will determine what the Reserve Bank of India is likely to do at its policy review on Friday.

The pair is seen holding in a 63.00 to 63.40 range during the rest of the session. The BSE Sensex is up 0.34 percent.

(Reporting by Swati Bhat)