USD/INR closed at 73.4600 against its open at 73.8050. Dollar dropped during European trades Tuesday on selling by banks across segment along with exporters amid overseas fund inflows into local stocks.
Since morning, selling was seen around higher levels, while, sharp sell-off was triggered after OPEC's general secretary comments.Meanwhile, local stocks extended gains as favourable trade data influenced buying from overseas and local fund as deficit fears ebbed.
The greenback remained subdued against its major currencies as investors were disappointed by weaker than expected retail sales report.
Retail sales in the US crept up by much less than expected in the month of September, reported the Commerce Department on Monday.
The Commerce Department said retail sales increased by 0.1% in September, matching the uptick seen in August. Economists had expected retail sales to climb by 0.5%.
A report released by the Federal Reserve Bank of New York on Monday showed the pace of growth in New York manufacturing activity accelerated by more than anticipated in the month of October.
The New York Fed said its general business conditions index climbed to 21.1 in October from 19.0 in September, with a positive reading indicating growth in regional manufacturing activity. Economists had expected the index to inch up to 20.0.
Sensex provisionally ends 278 points higher with 22 components in the green.