Dollar closed at 67.7750 against its opening at 68.2300.Dollar ended at one-week low Friday as foreign banks and corporate unwounded their long-term positions taking advantage of the recent rally.Dollar dropped to one-week low during European trades Friday on likely intervention by the Reserve Bank of India in the currency futures market."The central bank prefers intervention through the futures market over forwards and spot market when the rupee liquidity remains tight. Also, foreign banks including HSBC, Citi Bank, Standard Chartered Bank were seen unwinding their long positions".Wallmart-Flipkart deal inflow is supporting the rupee." RBI intervention in futures has an indirect impact on the spot price. If corporate see RBI selling dollars in the futures then they start cutting their long-term positions in the spot market.Dollar is trading down as foreign banks offloaded their long positions amid selling by exporters. Local stocks opened little changed tracking subdued Asian shares after the cancellation of the US-North Korea summit amid unabated buying by local investors provided some breather to the indices. The greenback recovered against its major peers began after President Donald Trump called off the planned summit with North Korean leader Kim Jong Un. Trump attributed the decision to the "tremendous anger and open hostility displayed in your most recent statement." On Thursday, Trump sent a letter to North Korean leader Kim Jong Un expressing his belief it would be inappropriate to hold the planned meeting in Singapore on June 12th. Therefore, please let this letter serve to represent that the Singapore summit, for the good of both parties, but to the detriment of the world, will not take place," Trump wrote.
On the US economic front, the Labour Department released a report on Thursday showing a weekly increase in first-time claims for US unemployment benefits. The Labour Department said initial jobless claims rose to 234,000 in the week ended May 19th, an increase of 11,000 from the previous week's revised level of 223,000. The increase came as a surprise to economists, who had expected jobless claims to edge down to 220,000 from the 222,000 originally reported for the previous week.
Sensex provisionally ends 295 points higher with 23 components in the green.
INTERNATIONAL
Asian shares were slightly weaker amid fragile market sentiment after U.S. President Donald Trump called off a key summit with North Korea, though investor concerns were softened by expectations the two countries may still continue dialogue.
Gold prices slipped as the dollar firmed against the other major currencies in Asia in late morning trade Friday, with the testing the 94 level.
Oil prices edged lower morning in Asia as Russia hinted it may increase output.
Bitcoin prices slipped amid reports that the U.S. Justice Department launched a criminal probe into cryptocurrency market manipulation.