Dollar closed at 64.5200 agaisnt its opening at 64.4500. Dollar ends higher on likely FII outflows post RBI-MPC outcome. "Oil buying and firm dollar are supporting the pair. RBI-MPC outcome is the focus". The central bank to keep interest rates on hold for a prolonged period starting with its policy meeting on concerns of rising inflation.The MPC led by RBI governor Urjit Patel is scheduled to hold its seventh two-day Monetary Policy meeting on Dec 5-6, with the central bank announcing the policy decision on Dec 6 at 2:30PM.The Reserve Bank of India-led Monetary Policy Committee may vote to maintain status-quo, keeping the central bank's key lending rate or repo rate at 6% in the fifth bi-monthly monetary policy.Most of the experts expect MPC to maintain a cautious tone at the policy meeting owing to the recent hardening in crude oil prices, concerns over likely discursiveness from the fiscal prudence path and the interest rate trajectory of the central banks in advanced economies.Crude oil prices gained as traders and investors took a break from selling and turned their focus from OPEC's output deal to supply and demand.The greenback gained as investors await the release of US employment data due later week. Investors will be keeping a close eye on Friday's US jobs data, as they try to gauge the economy's strength and determine the pace at which the Federal Reserve will be able to raise interest rates next year.
On the US economic front, with imports rising and exports edging lower, the Commerce Department reported on Tuesday showing the US trade deficit widened more than expected in the month of October. The activity in the US service sector grew at a slower than expected rate in the month of November.
Sensex provisionally ends 223 points lower with 26 components in the red.
INTERNATIONAL NEWS
Asian stocks slipped, dragged by losses on Wall Street as the technology sector stuttered yet again after a brief rebound, while the dollar sagged on lower long-term U.S. yields.
Oil prices dipped on Wednesday, as refined product inventories in the United States rose in what the market interpreted as a sign of lackluster demand.
Aussie fell after third quarter GDP estimates came in weaker than expected even though the data lags more timely figures such as wage growth.
Japanese government plans to cooperate with China on its Belt and Road initiative by financially supporting private-sector partnerships, as Tokyo seeks to improve bilateral ties with its Asian neighbor, the reported on Wednesday.
Gold gained in Asia on Wednesday as heightened political risk regionally and in Britain and the US supported the yellow metal.