Dollar closed at 63.7800 against its opening of 63.8400. Dollar ended flat as investors turned pessimistic regarding Federal Reserve rate hikes on economic and political concerns amid optimistic comments from European Central Bank Chief Mario Draghi tracking the weakness in dollar amid concerns over Federal Reserve rate hike. Also, Asian currencies traded higher against the dollar as investors were remained concerned about the direction of global monetary policies.The greenback fell to its lowest level since Jan 6, 2015, tracking the surge in euro after European Central Bank President Mario Draghi's hawkish comments.Also, investors rekindled their doubts over Federal Reserve monetary tightening after dovish comments from Fed policymakers.ECB decide on the future of its massive stimulus in the month of October even as policymakers are worried about the risks that a strengthening euro poses to the inflation outlook. The pros and cons of various policy scenarios were discussed and "probably the bulk of these decisions will be taken in October".
On the US economic front,
The Labour Department reported a sharp increase in first-time claims for unemployment benefits in the week ended Sep 2nd.The report said initial jobless claims rose to 298,000, an increase of 62,000 from the previous week's unrevised level of 236,000. Economists had expected jobless claims to jump to 241,000.
the report said unit labour costs rose by 0.2% during the quarter compared to the previously reported 0.6% growth. Unit labour costs had been expected to rise by a revised 0.3%.
Sensex provisionally ends down 8.18 points with 21 components in the red.
INTERNATIONAL NEWS:
Asian shares edged up as investors kept a wary eye on another U.S. storm, while the dollar skidded after European Central Bank chief Mario Draghi suggested the bank may begin tapering its massive stimulus programme this autumn.
Gold prces hit a fresh one-year high early as the dollar sagged on the back of weaker-than-expected U.S. jobs data and the euro firmed.
Japan’s economic growth in the second quarter was much slower than seen in a stellar preliminary reading, government data showed on Friday, confounding hopes for a long awaited pick-up in domestic demand.
Oil prices were little changed as the international petroleum industry remains in the grip of Caribbean hurricanes which have pummeled the region for the last two weeks.