Dollar is closed at 67.8600 against its opening at 67.6100. Dollar extended gains during afternoon tradeson dollar buying by foreign banks amid higher risk-aversion owing to political turmoil in Italy.. Dollar is trading up Tuesday on dollar demand by oil importers for their month-end payment. "State-run banks are buying dollars, while foreign banks including JP Morgan Chase and Standard Chartered Bank were cutting there short positions. Nationalised banks were buying dollars mostly for oil importers.Brent crude oil prices traded little changed, but remained under pressure from expectations that Saudi Arabia and Russia would pump more crude to ease a potential shortfall in supply. Brent crude oil price for July delivery traded 0.40% higher at $75.60 per barrel on Tuesday. The greenback remained subdued while trading near six-month high on optimism over upcoming US jobs data which is expected to show improvement. Also political instability in Italy also supported safe haven appeal for dollar. US markets remained closed Monday on account of Memorial Day.Dollar index, which weighs greenback against a basket of six major currencies traded at 94.33 Tuesday compared to 94.32 at close of Indian Market Monday.Local stocks opened flat tracking mixed Asian shares as political turmoil in Italy prompted investors to seek safety in bond markets.
BSE Sensex trades lower by over 50 points, while the Nifty 50 trades around 10,670.