Indian rupee falls on caution ahead of Fed; RBI keeps repo rate unchanged

MUMBAI: The Indian rupee fell on Wednesday as dealers remained cautious ahead of the Federal Reserve's tapering decision, giving up gains won after the central bank surprised investors by keeping rates unchanged.

India's central bank kept talking tough on inflation despite holding its policy interest rate unchanged, saying it will be ready to act even if the country struggles to raise its low growth rate.

The partially convertible rupee closed at 62.09/10 per dollar compared with Tuesday close of 62.01/02, a fifth day of losses out of six.

It rose to a high of 61.82 immediately after the Reserve Bank of India's decision, reflecting the jump in shares. Shares ended 1.2 percent higher.