USD/INR closed at 70.7625 against its opening at  70.89. Dollar ended down on selling by exporters amid likely overseas fund inflows into local stocks. Also, risk-appetite improved after reports said that Chinese foreign ministry spokesman Geng commented that US President Donald Trump and his Chinese counterpart Xi Jinping will reach mutually beneficial agreements. US-China trade tension eased. Exporters were seen selling and foreign banks sold on behalf of foreign investors injecting money into local equities.  

Oil prices had climbed nearly 3% in what was seen as largely a technical correction after weeks of losses.

Early Tuesday, US crude was off 4 cents at $51.59 a barrel. Brent crude futures had closed up $1.68 at $60.48 a barrel.Indian shares Tuesday fluctuated at open tracking Asian markets as US President Donald Trump threat to impose fresh tariffs on imports of iPhone from China dampened investor sentiment while the slide in crude oil prices helped boost risk appetite.

In an interview with Wall Street, US President Donald Trump said he'll likely push forward with plans to increase tariffs on $200 billion of Chinese goods, indicating he would also slap duties on all remaining imports from the Asian nation if negotiations with China's leader Xi Jinping fail to produce a trade deal.

Trump, said he's prepared to impose tariffs on a final batch of $267 billion of Chinese imports if he can't make a deal with Xi when they meet at the Group of 20 (G20) meeting in Argentina, which starts Nov 30. The rate would be either 10% or 25% and could, Trump added.

BSE Sensex closed 159.06 points up at 35,513.14, while the Nifty 50 ended 57 points higher at 10,685.60.