USD/INR closed Rs 70.4350 Tuesday compared to opening at Rs 70.4450. USD/INR ended down Tuesday on selling by foreign banks amid overseas inflows into local stocks.A sharp rebound in equities by mid-day triggered FII-driven demand for the local currency, weighing on spot.

China on announced it would impose higher tariffs on $60 billion of U.S. goods following Washington's decision last week to hike its own levies on $200 billion in Chinese imports.

Now, the US is preparing to slap tariffs on remaining Chinese imports, which could add levies on goods worth roughly $300 billion thus expanding US tariffs to cover all $540 billion in Chinese imports, according to a May 13 release by the Office of the US Trade Representative.With hopes fading for an early resolution of the year-long US-China trade dispute, President Trump said he would meet Chinese President Xi Jinping at the G20 leaders' summit in Osaka, Japan, on June 28-29.

The dollar index, which tracks the movement of the greenback against a basket of six major currencies, traded at 97.35 Tuesday late compared to 97.30 at close of Indian market on Monday.
The greenback surged against its major counterparts on the selling pressure after the US-China trade tensions increased. Meanwhile, crude oil futures dropped on increased trade war tensions between US-China.
Oil prices were up earlier on on growing concern over supply disruptions in the Middle East but the gains were capped by escalating US-China trade war.  Brent crude oil futures for July delivery traded at $70.59 a barrel compared to $71.70 a barrel at close of Indian market on Monday.Crude oil futures dropped as concerns over trade tensions between US and China increased after China announced retaliating measures.

Sensex snaps 9-day losing streak, rallies 228 points; Nifty ends at 11,222.