USD/INR closed at 69.94 against its opening of 69.90. USD/INR ends up on likely FII outflow from local stocks, escalatig trade tensions between US-China. USD/INR extended gains Rs 70.03 by intraday trading Thursday on likely FII outflows from the local stocks amid concerns over escalating trade tension between the US and China, which dampened the risk appetite of the investors. USD/INR opened over one-week high on Thursday on likely overseas outflows from local stocks tracking heightened risk aversion over the US-China trade tiff amid oil bids."Lingering trade war concerns weigh on local equities. FIIs are pulling out of local equity market. Oil bids are also supporting the spot.
US President Donald Trump said on Wednesday that China "broke the deal" in trade talks with Washington and would face stiff tariffs if no agreement is reached. Uncertainty in the Sino-US trade deal front stirred investors' sentiments leading to FIIs pulling out of riskier assets.
Local stocks opened lower as US imposing fresh tariff on Chinese imports amid fresh concerns about slowdown in the global economy led to increase in risk-averse trade.
The dollar index, which tracks the movement of greenback against a basket of six major currencies, traded at 97.64 Thursday late compared to 97.54 at close of Indian market on Wednesday. On going trade deal concerns also weigh on crude oil prices. Brent futures for July delivery traded 0.95% down at $69.70 a barrel on Thursday.Crude oil futures trading down on trade battle between US-China, despite the fall in the US crude stockpiles.
Sensex provisionally ends 225 points lower with 18 components in the red.