USDINR closed at 67.16 against its opening of 67.21.
Sensex closes 0.27%, while the Nifty 50 closes 0.27%.
Federal Reserve Chair Janet Yellen said U.S. interest rates could rise in the coming months.
Crude oil futures pressured by strong dollar.
The Reserve Bank is expected to keep key rates unchanged in the next policy meeting on June 7.
Gold flat after dipping to 3-week low in last session.