Rupee falls 19 paise to close at 82.78 against U.S. dollar

"Rupee consolidated in a narrow range ahead of the important events that are lined up today and tomorrow."

The rupee depreciated 19 paise to close at 82.78 (provisional) against the U.S. dollar on Wednesday, tracking a muted trend in domestic equities ahead of the release of the U.S. Fed's policy statement.

At the interbank foreign exchange market, the local unit opened at 82.64 and witnessed a high of 82.62 and a low of 82.81.

It finally settled at 82.78 against the American currency, registering a fall of 19 paise over its last close of 82.59.

"Rupee consolidated in a narrow range ahead of the important events that are lined up today and tomorrow," said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services.

The focus will be on the Federal Open Market Committee (FOMC) policy statement on Wednesday, which is likely to trigger volatility for the greenback.

The RBI's rate-setting panel will be meeting on Thursday to discuss and formulate a response to the government for a failure to meet the inflation target.

Its reply will focus on the reasons that led to inflation staying above 6% for nine consecutive months when it sees inflation coming back into the 2-6% band and the measures that will be taken, Governor Shaktikanta Das said.