Dollar is closed at 66.9000 against its opening of 66.4700. Dollar extended gains to near 14-month high during afternoon trades on month-end dollar demand amid likely overseas fund outflows form local stocks and debt market. Foreign banks are buying dollar as there are outflows from debt and equities as US yields have crossed 3%, also PSBs were buying dollars likely for oil importers. Indian shares and bonds are expected to open lower Wednesday tracking weak global cues amid surge in US bond yields seen denting investor sentiment. While, oil prices fell back from over three-year highs reached in the previous session as rising US fuel inventories and production weighed on an otherwise bullish market. The greenback remained steady, declining slightly as investors booked their profits after a recent rally in the currency.
Dollar index, which weighs greenback against a basket of six major currencies traded at 90.85 Wednesday compared to 90.88 at close of Indian Market Tuesday. Housing prices in US grew by 0.6% in February from 0.9% in the previous month, beating expectation of a just 0.5% rise. Also US new home sales in March grew to 694,000, a 4% monthly and an 8.8% yearly increase in home sales. Asian shares dipped Wednesday, tracking a sell-off in US stocks on fear of slowing growth and falling company profits.
Sensex provisionally ends 106 points lower with 19 components in the red.
INTERNATIONAL
Asian shares fell as a rise in U.S. bond yields to 3 percent and warnings from bellwether U.S. companies of higher costs drove fears that corporate earnings growth may peak soon.
Gold prices dropped morning as the dollar was driven higher by the 10-year U.S. treasury yields that surged to a four-year high at 3%.
Oil prices were flat morning in Asia after sliding below recent three-year highs, as rising U.S. crude inventories and production dragged on an otherwise bullish market.
General Motors (N:) and South Korea are considering increasing the size of their investment in the U.S. automaker's local unit from a previously proposed $2.8 billion.