USD/INR Closed at 71.75 aginst it open 71.40. Dollar ended at fresh record high for the sixth consecutive trading session Wednesday on likely overseas funds outflow from both local debt and stocks amid increased oil bids.
Investors risk-averse increased due to fear of renewed US-China tariff showdown, as the threat of fresh US tariffs on another $200 billion worth of Chinese goods could take effect after a public comment period ends on Thursday
Foreign banks and exporters always track the dollar movement. Dollar is weak, so the spot opened lower. However, investors will keep a close watch on (US President Donald) Trump's fresh tariff announcements.
The greenback plummeted against other major currencies as investors booked profit taking advantage of the one-week high levels.
Local stocks fluctuated at open Wednesday as weak global cue amid turbulence in emerging markets and trade tensions persisted continued to weigh on investor sentiment while rupee strengthening against the US dollar helped calms the nerves.
Investors are likely to stay on sideline awaiting latest developments in Donald Trump's trade disputes with China and Canada.
Sensex provisionally ends 152 points lower with 16 components in the red.