USDINR closed at 63.4000 against its opening at 63.5800. Dollar ended at thirty-month low Thursday on overseas fund inflows into local stocks, debt amid selling by exporters.Rupee also remained supported by influx of foreign portfolio investors'. "Inflows into local stocks, debt has led the spot pair end down..Dollar open little changed as investors remained on sidelines on lack of fresh triggers.No major position building will be seen as there are no fresh cues on the local and global front. The greenback gained grounds as investors booked profits taking advantage of the sharp slump amid upbeat US economic data. On the US economic front, a report released by the Institute for Supply Management showed growth in manufacturing activity unexpectedly accelerated in the month of December. The ISM said its purchasing managers index increased to 59.7 in December from 58.2 in November. Economists had expected the index to fall to 58.1. A separate report from the Commerce Department showed a bigger than expected increase in construction spending in the month of November. The US Commerce Department said construction spending rose by 0.8% to an annual rate of $1.257 trillion in November from a revised $1.247 trillion in October.

Meanwhile, the minutes of the Federal Reserve's latest monetary policy meeting was released Wednesday.The minutes of the December meeting showed most participants reiterated their support for continuing a gradual approach to hiking interest rates.

BSE Sensex closed higher by 176.26 points to 33,969.64, while the Nifty 50 rose 61.60 points to close at 10,504.80.

INTERNATIONAL

Asian shares flirted with 10-year highs on Thursday as solid economic data from the United States and Germany reinforced investors' optimism, while oil prices hovered at a 2-1/2-year high with unrest in Iran stoking supply disruption concerns.

Gold prices fell in Asia on Thursday as the Fed appeared a tad more hawkish in the December meeting minutes and investors fretted over inflation implications.

Oil prices on Thursday hit fresh two-and-a-half year highs and were at levels last seen at the start of the commodity slump in 2014/2015, with markets tightening amid tensions in Iran and due to ongoing OPEC-led production cuts.

U.S. Federal Reserve policymakers showed worry over the fate of currently low inflation and saw recent tax changes as providing a boost to consumer spending, according to the minutes of the U.S. central bank’s last policy meeting on Dec. 12-13 released on Wednesday.