Dollar closed at 65.0050 against its opening at 65.1700.Dollar fell during afternoon trade Friday on selling by foreign banks amid likely ICICI Securities IPO-related inflows. As dollar opened higher Friday on buying by nationalised banks and foreign banks likely for oil importers amid overseas fund outflows from local stocks on potential concerns over trade war."The market has thin volumes however, PSBs and foreign banks dollar demand is seen in the market,". Indian shares opened lower on fears China may propose a new round of tariffs against US products, further fanning threat of a trade war between the two great economies. US President Donald Trump had earlier announced tariffs on at least $50 billion worth of Chinese imports. Trade war concerns started hovering over the markets after Trump imposed tariffs on steel and aluminium imports.The greenback remained subdued against its major peers as investors continued to digest the Federal Reserve statement amid announcement that President Trump has hit China with $50 billion in tariffs.

On the US economic front, a report released by the Labour Department showed a modest rise in first-time claims for US unemployment benefits in the week ended Mar 17th. The report said initial jobless claims edged higher to 229,000, an increase of 3,000 from the previous week's unrevised level of 226,000. Economists had expected jobless claims to fall to 225,000. A separate report released by the Conference Board showed a bigger than expected increase by its index of leading US economic indicators.

Sensex provisionally ends 427 points lower with 25 components in the red.