Dollar closed at 67.0550 against its opening at 67.4400. Dollar ended at one-month low Friday on likely overseas funds inflow into HDFC Bank amid selling by exporters. Foreign banks were selling dollars on behalf of overseas investors who are investing in HDFC Bank after SEBI opened the window for foreign institutional investors to buy stocks of the banks for one month starting today. Dollar fell after opening up Friday on selling by foreign banks likely for exporters ahead of US NFP data and RBI policy next week.Also, overseas fund inflow into HDFC Bank as they open the window for foreign institutional investors' trading today."Foreign banks including Deutsche bank and Standard Chartered Bank were selling dollars. There is also FII inflows into HDFC bank after their window for FII opened today,". "Exporters too are selling dollar.".SEBI announced closing of FII trading window from July 1, 2018, it has decided to permit FIIs to buy stocks in open market for one month from June 1, 2018.Since this is the final opportunity for FIIs to buy HDFC Bank stock, there can be huge quantum of buying from FIIs side for one day. The greenback gained on higher risk-aversion owing to renewed trade tension after US planned to impose tariffs on steel and aluminium imports from Mexico, Canada, and European Union starting from Friday.Canada also announced retaliation against new US tariffs by imposing its own trade barriers on US steel, aluminium and other products, said the Canadian Foreign Minister Chrystia Freeland on Thursday.Freeland said Canada plans to slap dollar-for-dollar tariffs on the US. The Nafta partner's proposed import taxes would also cover whiskey, orange juice and other food products alongside the steel and aluminium tariffs. The retaliatory measures will cover CA $16.6 billion in imports. The products being targeted will be subject to tariffs between 10% and 25%.
BSE Sensex closed 95.12 points lower at 35,227.26, while the Nifty 50 ended 39.95 points down at 10,696.20.
INTERNATIONAL
Asian markets zig-zagged between mild gains and losses in early morning trade Friday, with Investors weighing the impact of relatively strong data out of China and Japan against renewed fears of a trade war out of the U.S. and the inclusion of Chinese stocks in the MSCI emerging markets index.
Gold prices were mixed Friday morning in Asia, with gold, silver and copper trading lower while platinum making gains.
Oil prices continued to dip slightly in morning trade in Asia Friday, after a reported rise in inventories in the U.S. and while investors worked to understand the implications of a divergence in the price of London-traded Brent crude and U.S.-traded WTI, the two major oil-price benchmarks.