Dollar closed at 65.4950 against its opening at 65.6500. Dollar closed down with a gap tracking strong dollar after strong US economic data release on Monday and optimism over US President Donald Trump's tax plan. Dollar strengthened after better than expected US economic data and also investors has grown positive on US President's tax plan. US construction spending rebounded 0.5% in August after two months of contraction led by strength in home building, and commercial and government construction.The climb came after declines of 1.2% in July. The US manufacturing sector accelerated in September rising to 60.8 in September from 58.8 in August. Market participants expected a decline to 58.0.   

US Federal Reserve Bank of Dallas President Robert Kaplan said that the door remains open to raising short-term interest rates this year. Republicans unveiled sweeping changes to America's tax code last week in a proposal that dramatically lowers taxes on businesses and many households but remains unclear on issues such as how to pay for it all. The framework, a production of the Trump administration and Republican leadership, calls for lowering the corporate rate from 35 to 20%, and pass-through business rates to 25%. 

Sensex provisionally ends 213.66 points higher with 21 components in green..

INTERNATIONAL

Asian shares rose, tracking record closes on Wall Street and upbeat economic data that lifted U.S. Treasury yields and the dollar, although weaker oil prices took their toll on some market segments.

Gold prices dipped in Asia as overnight dollar gains extended into the region, making the greenback-denominated commodity more expensive and with demand weak as China markets are shut for a week-long holiday.

Oil prices fell, declining for a second day and sapping more strength from a third-quarter rally, amid signs that a global glut in crude may not be clearing as quickly as some had hoped.

Japanese companies' inflation expectations eased slightly in September from three months ago in a worrying sign the economy continues to struggle with a deflationary mindset.