USD/INR closed at 72.9750 against its open at 72.54. Dollar ended at fresh record high Tuesday as Brent crude oil prices surged beyond $ 79 a barrel on reports that Saudi Arabia is comfortable with Brent above $80 a barrel. Also, foreign banks bought dollars likely for overseas investors who pulled out of local stocks, bidding up dollar demand further.News of Finance Minister hinting that the fall in rupee may not warrant drastic steps, also weighed on investors' sentiment.
However, there is nothing positive for emerging markets even in the remotest corner so the fall in spot will be limited.Local stocks opened higher Tuesday on local fund buying as slide in crude oil price helped lift investor risk appetite.
Meanwhile sluggish trend in Asian markets after Trump imposition of new tariffs on $200 billion worth of Chinese imports, would check gains.
Sensex provisionally ends 284.30 points lower with 24 components in the red.