USD/INR closed at 70.49 against its opening at 70.49. Dollar fell after opening marginally higher Tuesday on selling by foreign banks and exporters after the spot pair rose sharply yesterday.Most investors remain on sidelines ahead of the Reserve Bank of India monetary policy committee's policy statement release tomorrow. Also, OPEC meet where a supply cut is expected to be announced is pending for later this week.
Oil prices still at the same level as yesterday. Currently some exporters and foreign banks are on the sell-side. Next trigger is the RBI policy and OPEC meeting. The greenback remained subdued against other major peers after the US and China declared a truce on tariffs earlier declared against each other.
Reports suggested the 90 day window to iron out differences between both countries is only delaying the imminent Moreover there is confusion over when the 90-day period would start.
A White House official said it started on Dec 1. Earlier, White House economic adviser Larry Kudlow told reporters it would start on Jan 1.
Adding to that, none of the commitments that US officials said had been given by China, including reducing its 40% tariffs on autos, were agreed to in writing and specifics had yet to be hammered out.
Sensex closed down at 36,134.31. Nifty ended lower at 10,869.50.