Dollar is closed at 64.7300 against its opening of 64.9500. Dollar in the offshore market down during European trades tracking the fall in the spot pair amid weak dollar after Federal Reserve Official commented that aggressive rate hikes is not good for the US economy. Adding to this, likely overseas funds inflow into local stocks may further support the fall in spot pair. Local stocks are expected to open higher tracking the overnight gains at Wall Street and positive global cues. The greenback tumbled against its major peers after reaching one-week high levels as investors booked their profits after the release an upbeat US economic data and comment from key Fed officials.
Meanwhile, European Central Bank released minutes of its Jan 25 monetary policy meeting on Thursday.
Policymakers at the European Central Bank judged that it was too early to change the policy communication despite the increased confidence that inflation would move near its target, said ECB minutes.
Asian stocks traded on a positive note on Friday as investors continue to debate the outlook for central bank policy normalization and the impact of higher bond yields.
BSE Sensex closed 322.65 points higher at 34,142.15, while the Nifty 50 ended 108.35 points up at close at 10,491.05.
INTERNATIONAL
Asian shares rebounded as comments from a Federal Reserve official eased worries about faster rate rises in the United States, while the safe-haven yen held on to its gains amid heightened volatility across markets.
Australian Deputy Prime Minister Barnaby Joyce said he will resign as leader of his party and will move to the backbench after weeks of pressure over an extra-marital affair with his former media secretary.
Japanese Finance Minister Taro Aso said that it was important for the Bank of Japan to maintain its current monetary policy framework.
Oil prices edged up, supported by lower inventories, but gains were capped by a surge in U.S. exports that dragged net imports in the world's biggest fuel consumer to a record low.
Gold prices slipped and were headed for their sharpest weekly drop in 2-1/2 months as the dollar strengthened during the week.