USDINR closed at 65.2750 against its opening at 65.3500. Dollar closed down after opening flat after opening flat on selling by foreign banks amid weak dollar due to strong euro and improving risk appetite as investors believe that tension in North Korea may ease eventually.  Rupee is tracking the trend in strong Asian currencies and weak dollar. Foreign banks including Barclays were seen selling since opening levels. The greenback lost grounds against its major currencies as US President Trump stressed frustration over US posture toward North Korea amid a number of investors stayed away from their desks on account of holiday.

Local stocks opened higher tracking Asian shares amid cautious trading ahead of earnings season for the Jul-Sept quarter with over 30 companies reporting their earnings this week. Meanwhile Russia and China both called for restraint on North Korea on Monday after US President Donald Trump warned over the weekend that 'only one thing will work' in dealing with Pyongyang, hinting that military action was on his mind.

Sensex provisionally ends 71.06 points higher at 31,924.41 with 18 components in green.

INTERNATIONAL

Asian shares rose, shrugging off modest losses on Wall Street, while expectations of another U.S. interest rate increase this year continued to underpin the dollar.

Oil prices were steady as OPEC said there were clear signs the market was rebalancing and as U.S. production remained offline following Hurricane Nate.

China will have no problem meeting its economic growth target of around 6.5 percent this year, and may even beat it, the head of the Statistics Bureau said on Tuesday, confirming widespread market expectations.

Gold prices gained in Asia with physical demand from India during the festival season and the other top importer China as markets gear up after a week-long holiday last week.