The rupee on Wednesday pared all its gains to slip as much as 13 paise to 67.14 against the dollar at the Interbank Foreign Exchange on fresh selling of the US currency by banks and exporters. The rupee on Tuesday depreciated by 5 paise to end at 67.01 against the greenback.
Meanwhile, the dollar jumped after the Bank of Japan altered its policy framework, and investors bought back the US currency ahead of the outcome of the Federal Reserve's policy meeting later in the session. Japan's central bank, overhauling its massive stimulus programme, decided to scrap its focus on monetary base and set targets for long-term rates.
The Bank of Japan maintained the 0.1 per cent negative interest rate it applies to some of the excess reserves that financial institutions park with the central bank. But it abandoned its base money target and instead set a "yield curve control," under which it will buy long-term government bonds to keep 10-year bond yields around current levels of zero per cent. The dollar was up 0.8 per cent at 102.54 yen, after rising to a nearly one-week high of 102.67.