Dollar closed at 64.0725 against its opening at 64.1300. Dollar ended down on selling by foreign banks amid IPO and remittance related inflows. "Rupee is supported by IPO and remittance inflows. CitiBank, HDFC Bank and Bank of America were seen selling dollar,". Adding to this InterGlobe Aviation's institutional Placement Progbramme too may bring some inflows into the country.As Dollar open up on likely overseas outflows from local stocks as North Korea launched a missile over Japan. North Korea tensions have renewed and will lead to some risk aversion weighing on the rupee.North Korea again launched a missile above Japan and this may shape of markets today and next week. Since the news came, Asian currencies have weakened but currencies have not reacted much. Now much depends on US, Japan and S.Korea reacts". Dollar index, which weighs greenback against a basket of six major currencies.The greenback remained subdued against its major peers as investors analysed the US inflation data amid simmering tensions between US and North Korea.
Initial public offering (IPO) of ICICI Lombard General Insurance Company, Capacite Infraprojects, Sagar Diamonds related flows will support the rupee.
Geopolitical concerns generated some selling pressure in the dollar after North Korea threatened to use nuclear weapons to "sink" Japan and reduce the US to "ashes and darkness" for supporting a new round of sanctions by the United Nations.
Sensex provisionally ends 30.68 points, higher, with 12 components in green.
On the US economic front,
The Labour Department said its consumer price index rose in August after increasing by 0.1% in July. Economists had expected consumer prices to rise by 0.3%.
Excluding food and energy prices, the core consumer price index rose.
The annual rate of growth in consumer prices accelerated to 1.9% in August from 1.7% in July, although the annual growth in core consumer was prices was unchanged at 1.7%.
The report said initial jobless claims dropped to 284,000, a decrease of 14,000 from the previous week's unrevised level of 298,000. The drop surprised economists, who had expected jobless claims to rise to 300,000.
INTERNATIONAL
Asian shares dipped after North Korea fired another missile over Japan into the Pacific Ocean on Friday, demonstrating Pyongyang’s defiance in the face of intensifying sanctions.
German Finance Minister Wolfgang Schaeuble said in a newspaper interview that the European Central Bank needed to be very cautious when ending its ultra-loose monetary policy to prevent a nervous reaction from financial markets.
North Korea fired a missile that flew over Japan’s northern Hokkaido far out into the Pacific Ocean on Friday, South Korean and Japanese officials said, further ratcheting up tensions after Pyongyang’s recent test of its most powerful nuclear bomb.
Oil prices were lower on Friday but largely held gains that had prices flirting with multi-month highs, as the cleanup after hurricanes in the United States gathered pace and the outlook for demand took on a firmer tone.
Gold rose on Friday to pull further away from a two-week low, after North Korea fired another missile over Japan, triggering the latest round of safe-haven buying in markets while weighing on the dollar.