USD/INR closed at Rs 69.83/$1 compared to its opening of Rs 69.75/$1. USD/INR ends higher Wednesday on buying by nationalised banks, likely on behalf of oil importers for their month-end dollar payments. US-China trade war fear is hitting the risk-appetite.
Dollar is strong as invetsors seek safe haven shelter and also after an upbeat US data. Month-end dollar demand will remain supportive.Consumer confidence in the US rose to 134.1 in May, the strongest since November. Investors expected a reading of 130.00. The dollar strengthened against its major counterparts after the US Conference Board said its gauge on US consumer confidence surged in the month of May.
Amid the ongoing trade tension between the US and China, US President Donald Trump said Monday that the US was "not ready" to strike a deal with China. He also said tariffs on Chinese imports could go up "substantially."Investors seek shelter of safe haven dollar, further aiding the rise in spot as the Sino-US trade deal seems unlikely after comments from President Trump.
The dollar index, which tracks the movement of the greenback against a basket of six major currencies, traded at 97.80 Wednesday compared to 97.77 at close of Indian market on Tuesday.
Sensex provisionally ends 247 points lower, Nifty below 11,900.