Dollar closed at 67.1200 against its opening at 66.9300 .Dollar ended higher Thursday on buying by nationalised banks mostly on behalf of oil importers amid likely overseas fund outflows from local debt market.. Dollar is trading higher Thursday on buying by oil importers amid likely overseas fund outflows from local debt market on fears of another interest rate hike by the Reserve Bank of India. "Oil bids and likely FII outflows from local debt are supporting the up trend," said a dealer with private-sector bank. "Banks including Standard Chartered Bank, Axis Bank, HSBC bought dollars.". Gilt prices opened down on likely outflows from local debt amid short selling by traders as rate hike by the Reserve Bank of India raised fears of more rate hikes going ahead if inflation remains elevated.The RBI raised its repo rate for the first time in over four years on inflationary risks as crude oil continues to remain elevated. The central bank raised its repo rate by 25 basis points to 6.25%.Meanwhile, crude oil tumbled as US oil inventories unexpectedly increased. The EIA said both oil and gasoline inventories increased higher, hinting at a drop in demand."Rupee will get boost after the move by RBI as higher yields and carry make holding the currency favourable. Besides, the recent trend of FII flows has been quite positive (we believe it is more towards the stock market) besides help from oil that has been sustained in lower levels, ahead of the key OPEC meeting on Jun 22," said Jayaram Krishnamurthy, Co-Founder & COO at Almus Risk Consulting LLP.

Sensex provisionally ends 246 points higher with 21 components in the green.

INTERNATIONAL

Asian shares rose to a fresh 2-1/2-month high on Thursday, supported by sound economic fundamentals, while expectations the European Central Bank (ECB) could start to wind down its stimulus boosted the euro and global bond yields.

Malaysia’s anti-graft agency issued a notice on Thursday asking financier Low Taek Jho and one other person to assist in the investigation into a former unit of debt-laden state fund 1Malaysia Development Berhad (1MDB).

Oil prices rose on Thursday to shake off some of the previous session's losses, supported by plunging exports by OPEC-member Venezuela.