USD/INR closed at 68.68 against its open at 68.69. Dollar ended little changed Monday as investors remained on sidelines ahead of the release of Reserve Bank of India and US Fed policy statement later this week .Meanwhile, FII inflows into local stocks offset the impact of month-end dollar demand by oil importers. The Pair opened higher Monday on buying by foreign banks amid oil importers month-end dollar demand,"Foreign and nationalised banks are seen bidding in spot. Also, month-end dollar demand from oil importers too is supporting the pair," said a dealer with private-sector bank.
Crude oil remained supportive by easing trade tensions and Saudi Arabia's temporary shutdown of a key crude shipping lane.US crude added 25 cents to $68.94 in early trade, while Brent rose 1 cent to $74.30 a barrel.
Buying in lenders and other heavy weights aided to rally in indices.
Globally, Asian shares drifted lower on Monday while currencies kept to familiar ranges ahead of a busy week peppered with central bank meetings, corporate results and updates on US inflation and payrolls.
Investors await the outcomes of major central banks including Federal Reserve, Bank of Japan, Bank of England, and Reserve Bank of India this week for their rate setting meet.
Sensex provisionally ends 133 points higher with 18 components in the green.