Dollar closed at 67.2600 against its opening at 67.3600. Dollar ended up on buying by oil importers after Brent crude oil prices surged above $77 a barrel due to geo-political tension between the US and Iran. US President Donald Trump said the US is withdrawing from 2015 nuclear treaty with Iran and after the six month wait-in period would impose sanctions on Iran, raising the risk of conflict in the Middle East, upsetting European allies, and casting uncertainty over global oil supplies. After the Iran announcement, dollar stood strong and oil prices are trading higher supporting the pair.Trump officially withdrew the United States out of an international nuclear deal with Iran, raising the risk of conflict in the Middle East, upsetting European allies and casting uncertainty over global oil supplies.
Adding to this, Brent crude oil prices pushed higher after the Iran announcement, a move that may curb the OPEC-member's crude exports in an already tight market.The greenback regained grounds following US President Donald Trump's decision to pull out of the Iran nuclear deal.
Asian stocks were listless following President Donald Trump's announcement that the US would pull out of the Iran nuclear deal, with most markets posting slight declines in morning trade.
Rising inflation fears following the surge in crude oil prices would discourage investors from buying into risky asset class, such as equities.
Sensex provisionally ends 127.82 points higher with 19 components in the green.
INTERNATIONAL
Growth outlook for Asian economies remains strong, but the region is vulnerable to sudden tightening in global financial conditions, further market corrections and a shift towards protectionist policies, the IMF said on Wednesday.
Japanese workers' inflation-adjusted real wages rose for the first time in four months in March, government data showed, in a sign of a gradual increase in salaries that should help stimulate consumer spending.
Gold prices fell in Asian trading on Wednesday, as the dollar regained ground after U.S. President Donald Trump’s decision to pull the United states out of the Iran nuclear deal boosted oil prices and pushed Treasury yields higher.
Bank of England will wait until August before raising interest rates, according to a Reuters poll in which nearly all economists pushed back previous expectations of a hike on Thursday.