Dollar closed at 68.7350 against its opening at 68.5200. Dollar ended higher Wednesday on buying by oil importers as Brent crude oil prices remained elevated. "Oil buying remained supportive of the pair, State bank of India, Standard Chartered Bank and Axis Bank bought dollars in the spot,". The US sanctions on Iranian oil and transactions with the central bank of Iran are about to come into effect on November 6, threatening to cut supplies to an already tight market. Dollar opened down Wednesday tracking the subdued greenback as investors await the release of US Federal Reserve's June monetary policy meeting minutes to confirm whether policymakers will raise interest rates twice this year amid selling by foreign banks.
The greenback traded subdued on account of Independence Day holiday amid light day on the US economic front. New orders for US manufactured goods unexpectedly rebounded in the month of May, reported the Commerce Department on Tuesday.
The Commerce Department said factory orders increased by 0.4% in May after falling by a revised 0.4% in April.
Economists had expected orders to come in unchanged compared to the 0.8% decrease originally reported for the previous month
Also, German Chancellor Angela Merkel and her coalition partners reached a compromise deal to end a dispute over managing immigration.
On Thursday, Federal Open Market Committee's (FOMC) June minutes are expected to explain members' rationale for the decision to raise rates in June and signal further tightening in the policy path.
BSE Sensex closed 266.80 points higher at 35,645.40, while the Nifty 50 ended 70 points up at 10,769.90.