Rupee closed flat at 68.57 compared to opening at 68.56. Dollar ended down Monday on buying by foreign banks amid likely overseas funds outflow from local stocks."Foreign banks bought dollars mainly on behalf of foreign investors who pulled out of Indian stocks,". India's trade deficit widened to five-year high of $16.60 billion in June on rising imports bill owing to sharp rise in crude oil prices, government data.
Foreign banks were on the buy side as investors sentiments weakened after a sharp rise in India's trade deficit, data showed on Friday. Also, dollar buying by few oil importers supported the pair.
The greenback faded from a two-week peak which was tied to news of a record Chinese trade surplus that may fuel US-China trade tensions amid a strong Chinese economic data.
Sensex drops 20 pts, Nifty50 tests 11,000
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