Dollar closed at 68.3425 against its opening of 68.3000. Dollar pare losses by late trades on buying by nationalised banks mostly on behalf of oil importers for their month-end dollar payment. Dollar buying by nationalised banks including State Bank of India mostly for oil importers will support the spot pair.The dollar lost momentum on Thursday after minutes of the Federal Reserve's last policy meeting showed policymakers were dovish on their view on interest rate. Federal Reserve officials signalled they are set to raise interest rates at their meeting in June, but sent no clear message on whether they'd hike two or more hikes this year. US central bankers said "it would likely soon be appropriate" to increase the benchmark policy rate, according to a record of their May 1-2 meeting released Wednesday, confirming investor expectations for a move next month.
Beyond that, officials "expressed a range of views on the amount of further policy firming that would likely be required." Also, US President Donald Trump proposed looking into imposing new tariffs on imported cars may continue to weigh on the greenback. The dollar's fall accelerated as US President Donald Trump appeared to have opened a new front in trade war by considering new tariffs on cars just days after Washington agreed with China to put "on hold" its plan to impose tariffs on $150 billion worth Chinese goods.
Sensex ends 371 points higher with 24 components in the green.
INTERNATIONAL
Asian shares fell after the U.S. government launched a national security probe into auto imports that could lead to new tariffs, and President Donald Trump’s comments indicated fresh setbacks in U.S.-China trade talks.
Gold prices rose as uncertainty over the trade talks between the U.S. and China supported gold’s safe-haven demand.
Bitcoin prices fell amid reports that India is proposing a crypto tax in the form of the Goods and Services Tax (GST).
Bank of Japan board member Makoto Sakurai said excessive monetary easing could destabilise the economy and suggested the bank could whittle down its massive stimulus programme if growth continues to strengthen.