Dollar opened at 65.0700 against its Wednesday closing at 65.1700.Dollar opened down Tuesday on selling by foreign banks amid bunched up inflows following long weekend.FII inflows into local debt ahead of BSE auction of FPI investment limit in Indian bonds too supported the rupee. "Bunched up inflows after long weekend along with the RBI's decision to spread bank's bond MTM losses is supporting the rupee,".According to a private-sector bank, foreign banks sold dollars during opening levels. The RBI Monday allowed banks to spread the losses incurred while trading in bonds during the third and fourth quarter of FY2018 over up to four quarters starting with the quarter when losses were realised. "With a view to addressing the systemic impact of sharp increase in the yields on Government Securities, it has been decided to grant banks the option to spread provisioning for mark to market (MTM) losses on investments held in AFS and HFT for the quarters ended Dec 31, 2017 and Mar 31, 2018," RBI said.BSE said Wednesday it will auction Rs 110.45 billion of unutilized investment limit of foreign portfolio investors in government bonds between 3:30-5:30PM later today. Investor will continue to stay focus on global markets for cues while Parliamentary proceedings will be eyed for further development.There will be caution ahead of the Reserve Bank of India (RBI) MPC meet later this week.

 The MPC led by RBI governor Urjit Patel is scheduled to hold its first two-day Monetary Policy meeting of FY19 on Apr 4-5, with the central bank releasing the policy statement on Apr 5 at 2:30PM.

Nifty provisionally ends 31 points higher with 30 components in the green.

INTERNATIONAL

 Local stocks opened lower tracking slide in Asian equities following overnight slide in US led by technology stocks and renewed trade war fears.

Asian shares slipped on Tuesday amid escalating trade tensions and worries over the fading outlook for global tech giants, but investors held their nerves to focus instead on prospects for stronger world growth.

Gold prices eased on Tuesday after gaining more than 1 percent in the previous session, even as a sell-off in global equities amid concerns over a trade war between China and the United States continued to support the safe-haven metal.

Oil prices inched up on Tuesday as rising Russian output and expectations of a reduction in Saudi Arabian crude prices were offset by a potential slowdown in U.S. production.