USDINR closed at 69.0450 against its opening at 68.7100. Dollar ended at record high Thursday as risk-averse foreign investors pulled out of Indian stocks as before the first no-trust vote against Prime Minister Narendra Modi-led NDA government on Friday. Dealers also said dollar buying by foreign bank tracking the strength of the greenback against other major currencies amid oil bids also supported the demand for the greenback.
"Instability in the Asian currencies are dragging rupee weaker against the dollar. Chinese Yuan has the major role to play, with investors fearing along with coolness in Chinese economic growth there might be pickup in US economy. Foreign banks are seen buying in spot along with oil bids," said a dealer with private-sector bank.
According to Cube Edugains, "Yesterday CNY slipped to 6.7150 and currently below 6.730 nearing to a years low on back of the comments by Trumps top economic advisor blaming China's president over stalemate to resolve trade war. All major Asian and emerging currencies including rupee turned red following weakness of CNY.
The yuan slumped after the US President Donald Trump's top economic adviser accused Chinese President Xi Jinping of holding up a US-China trade deal.
On the energy front, oil prices remained steady after an unexpected rise in US crude inventories was overshadowed by strong US demand data for gasoline overnight.
US crude futures edged up by 0.07% to trade at $68.81 per barrel and Brent crude was slipped 0.21% to trade at $72.75. Both contracts settled higher by 1% on Wednesday.
BSE Sensex closed 22.21 points down at 36,351.23, while the Nifty 50 ended 23.35 points lower at 10,957.10.