USD/INR closed at 72.6050 against it open at 72.70. Rupee ended down Wednesday on selling by foreign banks amid likely overseas funds inflow into local debt.Foreign banks including BNP Paribas sold dollars. There were some FII inflows into government bonds. Also, investors are expecting a dovish Fed policy outlook today.
There are some FII inflows into local equities supporting rupee demand against dollar. Also Brent corrected today slightlyInvestors now await the Federal Reserve monetary policy release scheduled later today wherein policy makers are expected to hike rates.
Local stocks opened higher on value buying in financial and lenders as investors celebrate Finance Ministry decision to review PCA guideline amid optimism over global economy growth.
Markets already discounted Fed rate hike as the recent data points to healthy trend in world's largest economy.
Adding to that, Brent crude oil traded off a four-year high Wednesday after the US said it would ensure crude markets are well supplied before sanctions are re-imposed on Iran.
Sensex provisionally ends 138 points lower with 20 components in the red.