Dollar closed at 67.7000 against its opening at 67.7000. Dollar ended down Thursday on selling by exporters taking advantage of the recent rally in the spot pair. "Exporters continued selling in spot taking advantage of the recent rally," said a dealer with a private sector bank.   Dollar pared losses during afternoon trades Thursday on buying by oil importers as Brent crude oil prices inched towards $80 a barrel.Dollar opened lower, snapping two-day rise Thursday tracking the global weakness in the greenback amid selling by foreign bank and exporters. Adding further, optimism over Bharatiya Janata Party (BJP) forming the government in Karnataka today is supporting the down trend in spot."The spot has been over bought, we are seeing foreign banks cutting positions,". According to Cube Edugains, "Some dollar selling may come in as BJP forms government in Karnataka (with lot of riders!).".BS Yeddyurappa will take oath as Karnataka Chief Minister at 9AM today after his party, the BJP, was invited to form government by the Governor.On Wednesday evening, the BJP leader was given 15 days to prove majority by the Governor. In a rare post-midnight hearing, the Supreme Court ruled out that it won't stop Mr Yeddyurappa swearing-in. "As far as swearing-in is concerned, we are not restraining it, but we are making it subject to the outcome of the case," said a three-judge bench, comprising Justices AK Sikri, SA Bobde and Ashok Bhushan, after the all-night hearing that stretched for three-and-a-half hours. Also, the Supreme Court will resume hearing the case Friday morning at 10.30AM and has ordered the BJP to produce the letters submitted by BS Yeddyurappa to the governor by then. The greenback faltered against its major peers as traders turned cautious after North Korea threatened to cancel an historic meeting between leader Kim Jong Un and President Donald Trump amid mixed economic data.

BSE Sensex closed 238.76 points lower at 35,149.12, while the Nifty 50 ended 58.40 points down at 10,682.70.

INTERNATIONAL

Asian shares edged higher on Thursday while the euro gained some respite after hitting five-month lows a day earlier.

Gold prices made modest gains on Thursday after touching their lowest level this year in the previous session, amid geopolitical uncertainty and a slightly weaker U.S. dollar.

 India will suspend operations against militants fighting its rule in the disputed region of Kashmir during the holy Muslim month of Ramadan.