USD/INR closed at 72.63 against its open at 72.47. Dollar/rupee ended up Monday as Brent crude oil prices surged above to $80 a barrel amid escalating US-China trade tension weighed on market sentiments.
Brent crude oil prices jumped to a four-year high to trade above $80/bbl on Monday after OPEC declined to announce an immediate increase in production despite calls by US President Donald Trump for action to raise global supply amid overhanging US plan to impose new sanctions against Iran. Meanwhile the greenback gained against its major peers as safe haven demand was bid up on news that China cancelled trade talks with the US, with the market also eyeing this week's US Federal Reserve meeting for guidance on future rate hikes.
Investors focus is on the Sino-US trade war as China added $60 billion of US products to its import tariff list, retaliating against duties on $200 billion of Chinese imports that come into effect on Monday.
China also cancelled mid-level trade talks with the US, as well as a proposed visit to Washington by vice premier Liu He originally scheduled for this week.
Investors now await this week's Federal Reserve meeting outcome, wherein the US central bank is widely expected to raise benchmark interest rates and shed light on the path for future rate hikes. The Fed will end its two-day policy meeting on Wednesday.
Sensex provisionally ends 494 points lower with 24 components in the red.