Dollar closed at 69.84 against its opening of 70.11. USDINR extended losses during afternoon trades on selling by foreign banks amid likely overseas fund inflows into local stocks and debt, amid a weak greenback. Foreign banks are on the sell side, mostly on behalf of foreign investors pouring money into local equities and also tracking a weak dollar. The greenback plunged against other major currencies following dovish comments from Fed Chair Jerome Powell, who hinted that rate hike cycle is nearing its end boosting investors' confidence for riskier assets. On Wednesday, the Fed chair Powell said that US policy rates were “just below” neutral, less than two months after saying rates were probably “a long way” from that point.
Crude oil prices remained under pressure after oil supply in the U.S. rose ahead of a key OPEC meeting. This comes as some key leaders meet on the sidelines of the G20 summit. Russian President Vladimir Putin said they were willing to work with OPEC to stabilise the market.
BSE Sensex closed 453.46 points up , while the Nifty 50 ended 129.85 points higher.