USD/INR closed at 72.45 against its opened 72.45. Dollar ended at fresh record Monday as overseas investors pulled out of local stocks and debt amid a strong trading in greenback.
The safe-haven bets for dollar increased after US President remarked that the administration is considering imposing tariffs on $200 billion worth of Chinese goods following the expiration of a public comment period at midnight on Thursday.
"The $200 billion we are talking about could take place very soon depending on what happens," said Trump. "To a certain extent it's going to be up to China."
"And I hate to say this, but behind that is another $267 billion ready to go on short notice if I want," Trump added. "That changes the equation."
Meanwhile, China's Commerce Ministry had warned that it will be forced to roll out necessary retaliatory measures if the US imposes any new tariffs.
On the US economic front, Labour Department reported stronger than expected job growth in the month of August.
The current data painted a positive picture of the economy and reinforced expectations the Federal Reserve will raise interest rates later this month.
Local stocks opened lower tracking weak global cues as US-China trade war fears are back on table.
Investors would likely stay on the sideline awaiting key trade data from China and Japan later today besides European Central Bank interest rate decision later this week.
Sensex provisionally ends 464 points lower with 28 components in the red.