USD/INR closed at Rs 70.3350 compared to its opening of Rs 70.34. USD/INR in both onshore and offshore markets ended down as trade tensions between the US and China seemed easing, but elevated oil prices are still likely to drive a rebound later in the day.
Foreign banks are selling dollar may be on behalf of overseas investors. Brent oil prices eased on rise in US stockpiles and the risk appetite of the investors increased as the trade tensions eased between US and China.Local stocks opened higher Wednesday tracking gains in Asian peers on hopes of easing global trade worries.
US President Donald Trump reference to the escalating trade war with China as "a little squabble" helped ease the risk-wariness.
Crude oil futures eased on rise in US crude oil stockpiles.US ADP weekly crude oil stock rose to 8.600 million in the week of May 10 compared to 2.806 million of its previous release.Brent futures for July delivery traded down at $71.01 a barrel on Wednesday morning compared to $71.30 a barrel at close of Indian market on Tuesday.
Meanwhile, the dollar index, which tracks the movement of greenback against a basket of six major currencies, traded at 97.51 Wednesday compared to 97.35 at close of Indian market on Tuesday.
Sensex provisionally ends 203 points lower with 27 components in the red, Nifty below 11,200.