USD/INR closed at 68.43 against its open at 68.55.The pair dropped after release of Reserve Bank of India increased the Repo Rate by 25 bps , However the fall of dollar/rupee was capped owing to oil bids from oil importers.
There are inflows into local stocks which are weighing on the pair however oil bids are there at dips. Investors would await outcome of the Reserve Bank of India (RBI) three-day Monetary Policy Committee meet outcome.
Crude oil prices dropped after industry data showed US stockpiles of crude unexpectedly increased, starting the new month in negative territory after the largest monthly decline in two years in July.
Brent crude October futures fell 0.4%, to $73.91 a barrel.
Sensex ends 84 points down; RBI raises repo rate by 25 bps.