USD/INR closed at 70.46 against its open at 70.64. Dollar down as The Reserve Bank of India’s (RBI) monetary policy committee (MPC) has kept the interest rates unchanged at 6.5% following a three-day meeting and maintained the “calibrated tightening” stance.
"Oil importers are buying as oil prices lost its earlier gains giving oil importers a chance to shore up their reserves as they fear OPEC may cut production at their meeting Thursday. State Bank of India bought dollars mostly on behalf of importers. US-China trade concern still remains and FIIs are likely pulling out of local equities.
Brent crude oil prices slumped after Saudi Arabia's oil chief indicated OPEC and allied producers are yet to reach consensus on whether supply curbs are in order.
Also, prices also lost ground pressured by a weekly report from the American Petroleum Institute(API) that said US crude inventories rose by 5.4 million barrels in the week to Nov 30, to 448 million barrels, in a sign that US oil markets are in a growing glut.
Brent crude oil futures for Feb delivery traded 1.87% down at $60.92 a barrel.
Also, sentiments sagged, raising bids for safe haven dollar as President Trump's claims of a new trade agreement with Chinese President Xi Jinping showed signs of crumbling, with senior officials seeking to play down expectations of a breakthrough and acknowledging that major provisions remained in flux.
Renewed doubts over the recent US-China trade truce raised risk-off sentiments in the market pushing the greenback higher.
NSE closed down to 10,787.40 , whereas BSE fell 35,888.83.