Dollar closed at 65.1000 against its opening at 65.1200. Dollar extended losses during afternoon trade Thursday on selling by foreign banks amid ICICI Securities initial public offering related inflow as dollar open lower Thursday on weak dollar after Federal Reserve raised interest rate but refrained from hinting fourth rate hike in 2018, "Dollar stands weak against major currencies as Fed forecasted only three rate hike in total in 2018, dampening investors' sentiment,".The dollar fell to two week low after the Federal Reserve raised interest rates but opted not to add a fourth rate increase to its 2018 forecast. The central bank raised rates by 25 basis points, in line with market expectations.Federal Reserve's policy makers forecasted a steeper path of hikes in 2019 and 2020, citing an improving economic outlook, but continued to project a total of three rate hikes in 2018.Seven Fed officials projected at least four quarter-point hikes would be appropriate this year, while eight expected three or fewer increases to be warranted.The dollar was also driven down by concerns that an increase in trade barriers may hurt growth. US President Donald Trump's administration plans to release on Thursday a package of proposed punitive measures aimed at China that include tariffs on imports worth at least $30 billion.

BSE Sensex closed lower by 129.91 points at 33,006.27, while the Nifty 50 fell 40.50 points to close at 10,114.75.

INTERNATIONAL

 Asian markets rose after the US Federal Reserve raised interest rates for the first time this year.

oil prices rose to the highest level in more than one month on Wednesday, bolstered by risks to global supply and an unexpected decline in US stockpiles amid persistent concern related to the Iran nuclear deal.