Dollar closed at 63.6550 against its opening of 63.6500.  Dollar ended up Thursday on buying by nationalised and private banks likely for oil importers amid strong dollar. Dollar extend gains during afternoon trade tracking the surge in the greenback after China's foreign ministry clarified that the previously reported news of China reducing or halting purchase of US Treasury as 'fake news'. The dollar gained grounds against its major peers after China declared that previously reported news on China slowing or halting purchase of US Treasury were fake.China's foreign exchange regulator said a recent report that China was considering slowing down or halting its purchases of US Treasury bonds could be based on erroneous information. On the US economic front, the Labour Department released a report on Wednesday showing US import prices rose by much less than expected in the month of December with a drop in prices for non-fuel imports partly offsetting a jump in prices for fuel imports. The Labour Department said import prices inched up by 0.1% in December after climbing by an upwardly revised 0.8% in November.

Investors in Asian countries remained focused on quarterly releases as Japanese corporates kicked off earnings season.

BSE Sensex closed higher by 70.42 points to 34,503.49, while the Nifty 50 rose 19 points to close at 10,651.20.

INTERNATIONAL

New Year rally in Asian shares ran out of steam  as concerns about the U.S. administration’s protectionist stance hit Wall Street while U.S. bonds were dented by speculation China may curtail buying.
 

China's commerce ministry said on Thursday the United States' restrictions on tech exports to the country will contribute to the trade deficit it has with China.

South Korea's largest cryptocurrency exchanges were raided by police and tax agencies this week for alleged tax evasion, people familiar with the investigation said on Thursday.

Crude oil prices were mixed in early Asia on Thursday with investors braced for a decision expected on Friday on whether the Trump administration will continue with economic sanctions waivers on Iran.

Gold prices eased slightly in Asia on Thursday as investors debated the prospect of China sharly trimming puchases of US Treasurys and whether the Bank of Japan is set to inch forward on a way out of its aggressive monetary policy.