Dollar closed at 64.3100 against its opening at 64.4500. Dollar in the offshore market closed down during European trades Wednesday tracking the drop in the spot pair on selling by foreign banks likely for exporters amid weak dollar. Dollar open up tracking the strength in the greenback over improved optimism over the passage of US tax reform amid renewed trigger of geo-political tension. The Senate took a big step forward when the Budget Committee voted to pass the Republicans' $1.5 trillion tax package, clearing the way for the full Senate to vote on the bill later this week.
The Senate was expected to vote on a bill aimed at reforming the US tax code on Thursday.
Adding to this, Fed chair nominee Jerome Powell hinted at a rate hike next month, building demand for the greenback. The dollar gained grounds against major peers as after Senate made a major push in the US tax reform, also backed up with strong US economic data and fresh trigger of geo-political tensions. US consumer confidence increased to 129.5 in November from 126.2 in October, which was already the highest level in 17 years. Also, In the Senate confirmation hearing, Fed chair nominee Jerome Powell did not commit definitively to a December rate hike but hinted that the likelihood of rate hike is growing.
BSE Sensex traded higher by 31.98 points, or 0.10%, at 33,650.57, while the Nifty 50 gained 3.55 points, or 0.03%, to 10,373.80.
INTERNATIONAL
Asian shares were mixed with a surprise gain in Tokyo despite a missile test by North Korea early in the morning in Asia that rattled risk views.
Japanese retail sales fell for the first time in a year last month, government data showed on Wednesday, as poor weather including two typhoons kept consumers away from stores and restaurants.
China's economy is still facing relatively large downward risks that may become apparent by early 2018, a senior official of the banking regulator said on Wednesday.
Yen weakened in Asia on Wednesday with a fresh ballistic missile test by North Korea adding to concerns that Pyongyang may again test a nuclear weapon.
Gold prices failed to get a significant boost in Asia after the latest ballistic missile test by North Korea.
Crude oil eased in Asia as disappointing US industry inventory estimates dampened sentiment and as attention turns to an OPEC meeting in Vienna on output curb extensions.