Dollar closed at 67.42750 against its opening at 67.8450. Dollar extended fall during afternoon trades on selling by exporters amid subdued trading as public sector banks along with few private sector banks are on strike today. Adding to this, Brent crude oil prices dipped amid concerns over OPEC-led coalition increasing production going forward. Brent crude oil price for July delivery traded 0.60% lower at $74.94 per barrel. The greenback stood high, trading at seven-month high on increased safe-haven appeal as investors turned jittery over political situation in Italy. Italian President appointed former International Monetary Fund official, Carlo Cottarelli as interim Prime Minister, with an assertive move to put a temporary end to an 85-day-long stalemate. Cottarelli was asked to form a technical cabinet able to lead the country to snap elections, either by late 2018 or early 2019, after efforts by anti-establishment Five Star Movement (M5S) and rightwing League to form a government failed on Sunday. 

BSE Sensex closed 43.13 points lower at 34,906.11, while the Nifty 50 ended 18.95 points down at 10,614.35.

INTERNATIONAL

Asian stocks extended a global sell-off on Wednesday as Italy's political crisis rippled across financial markets, toppling the euro to a 10-month low, pushing up Italian borrowing costs and sending investors rushing to safe-haven assets such as U.S. Treasuries.

Oil prices edged down morning in Asia as expectations that Saudi Arabia and Russia will pump more crude weighed on the market.

China lashed out at Washington's unexpected statement that it will press ahead with tariffs and restrictions on investments by Chinese companies, saying Beijing was ready to fight back if Washington was looking to ignite a trade war.

Italy may hold repeat elections as early as July after the man asked to be prime minister failed to secure support from major political parties for even a stop-gap government, sources said on Tuesday, as markets tumbled on the growing political turmoil.