Dollar closed at 68.0500 against its opening at 67.7700. Dollar snapped two-day fall Friday on increased demand from oil importers as Brent crude oil prices shoot above $80 a barrel for the first time in four years.Dollar is trading higher on increased bids from oil importers after Brent crude oil prices breached $80 a barrel on concerns of lower Iranian exports amid firm greenback. Crude oil prices traded around three-year high level with Brent crude oil price breaching $80 a barrel as IEA cut oil demand forecast despite lingering expectations that Organisation of Petroleum Exporting Countries will further reduce supplies. London's Brent crude oil price for July delivery touched $80 a barrel for the first time since 2014. The greenback touched its highest level since Dec 26, 2017 against other major currencies tracking the up trend in US treasury yields despite mixed economic data.
On the US economic front, a report released by the Labour Department on Thursday showed first-time claims for unemployment benefits increased by more than anticipated in the week ended May 12th. Growth in Philadelphia-area manufacturing activity unexpectedly saw a substantial acceleration in the month of May, reported the Federal Reserve Bank of Philadelphia on Thursday. Suggesting solid economic growth should continue in the second half, the Conference Board released a report on Thursday showing a continued uptrend by its index of leading US economic indicators in the month of April.
Sensex provisionally ends at 34,888.82, over 260 points lower from its last close with 24 components in the red.
INTERNATIONAL
Asian stocks were steady amid caution over developments in U.S.-China trade negotiations, while the dollar perched near a five-month peak after the benchmark U.S. Treasury yield hit its highest in seven years.
Oil prices held firm on strong demand, ongoing supply cuts led by producer cartel OPEC and looming U.S. sanctions against major crude exporter Iran.
China said on Friday it was dropping an anti-dumping probe into imports of U.S. sorghum, a conciliatory gesture as top officials meet in Washington in an effort to head off a trade war between the world's two biggest economies.
Gold prices slipped on Friday in Asia amid rising U.S. treasury yields and a stronger dollar.