Dollar closed at 67.4050 against its opening at 67.4200. Dollar ended down Thursday as oil importers' dollar demand were offset by overseas funds inflow into local stocks. Dollar fell after opening flat Thursday on selling by foreign banks likely for foreign portfolio investors who are investing in local equities amid easing political turmoil in Italy. Meanwhile, traded volume remains thin owing to two-day strike by public sector banks along with few private banks to protest against the meagre wage hike, starting from yesterday. "There is no specific direction for spot to move after tension in Italy faded. Also most of the PSU and some private banks are on strike, hence some exporters are selling dollars in the spot,".The Italian president, Sergio Mattarella, granted Italy's two populist leaders more time to form a government in an attempt to avoid a snap election.Mattarella signalled that he was ready to install a technocrat government if a deal could not be reached, but decided to give Five Star Movement and the League more time to draw up a list of ministers that could be accepted by all parties. Fears that fresh Italian elections could strengthen the hand of anti-establishment parties eased, which helped to bring down Italian bond yields after they spiked sharply on Tuesday. The greenback lost grounds after Italy moved to calm political turbulence and sought to avoid a potentially disruptive early election.Dollar index, which weighs greenback against a basket of six major currencies traded at 94.01 Thursday compared to 94.32 at close of Indian Market Wednesday.
the US economy grew at a softer pace in the first quarter than originally reported, mainly because of a slower build-up in inventories. Gross domestic product was trimmed to an annual 2.2% pace from 2.3%.Also, personal consumption expenditure for Q1 grew by 2.6%, slower than earlier recorder.Reports said that US will announce plans to impose tariffs on steel and aluminium from the European Union.
The Chinese government criticized the US, which renewed threat to raise duties on some imports from China. While, officials from the US and European Union held talks on the tariffs the Trump administration has proposed on European steel and aluminium. European Union negotiations seemed pessimistic and said they expected the US to announce a final decision Thursday.
China and the EU have both said they will react to new tariffs imposed by the US with duties of their own, which has raised the prospect of greater tensions and the possibility of trade wars.
BSE Sensex closed 416.27 points higher at 35,322.38, while the Nifty 50 ended 121.80 points up at 10,736.15.
INTERNATIONAL
Asian stocks rebounded from a two-month trough on Thursday, while the euro enjoyed a respite after sinking to its lowest in 10 months as political turmoil in Italy that had roiled global financial markets showed signs of easing.
Gold prices edged higher on Thursday, as the dollar eased from 6-1/2-month highs hit earlier this week, with prices further supported by concerns over U.S.-China trade.
Oil prices took a dip on Thursday morning in Asia due to a surprise surge in inventories in the US, paired with expectations that other markets may decide to increase output next month.
High-ranking officials of the United States and North Korea met in New York late on Wednesday in the first of two days of talks about the future of Pyongyang’s nuclear weapons program and a possible summit between U.S. President Donald Trump and North Korean leader Kim Jong Un.