Dollar closed at 63.8525 against its opening at 63.8400. Dollar in the offshore market traded down during European trades on selling by foreign banks amid likely overseas fund inflows into stocks. Crude oil prices hovered around $70/barrel as US crude inventories declined after reports stated rebel in Nigeria threatened to attack the country's petroleum infrastructure. Indian shares opened higher, fresh record opening for both benchmark indices, on favourable fiscal third quarter earnings, overseas fund buying amid positive global cues. The greenback turned mixed against its major peers after the Federal Reserve Beige Book stated that the US economy continue to expand at a "modest to moderate" pace in December and early January. Also, the Federal Reserve reported Wednesday that US industrial production climbed by 0.9% in December. The National Association of Home Builders reported that US homebuilder confidence dropped to 72 in January, after reaching an 18-year high of 74 in December.
Asian markets traded at record levels, tracking a rally in the Wall Street on optimism over prospects for global growth and improved corporate earnings while the dollar pulled back from three-year lows as comments by European Central Bank officials tempered the euro's recent rally.
Investors await a slew of Chinese data due later in the day for further direction.
BSE Sensex closed higher by 178.47 points to 35,260.29, while the Nifty 50 rose 28.45 points to close at 10,817.
INTERNATIONAL
Asian stocks struck record highs, with a rally by Wall Street supporting bullish investor sentiment, while the dollar pulled back from three-year lows as comments by European Central Bank officials tempered the euro's recent rally.
Gold slipped to its lowest in nearly a week, as the U.S. dollar edged further away from three-year lows propped up by stronger-than-expected economic data from the United States.
Oil prices rose on a reported decline in inventories, and as rebels in Nigeria threatened to attack the country's petroleum infrastructure.
Bank of Japan will keep its long-term interest rate target unchanged this year, though 40 percent expect a hike, reflecting the mounting speculation as Japan's economy continues to strengthen.
Euro nursed losses , having retreated from a three-year high after comments from European Central Bank officials this week hinted at concerns over the currency’s recent strength.