USD/INR closed at 72.3050 against its open at 72.1650. Dollar ended at eight-week low selling by foreign banks and exporters amid sharp drop in crude oil prices. Foreign banks and exporters sold dollars. Brent crude oil price fell sharply raising investors' risk sentiments. Local stocks higher Wednesday as slide in crude oil prices spur investors risk appetite. Buying witnessed in oil marketing companies as weak crude prices lead to better gross refining margins.Globally, Asia markets edged lower as investors fretted about slowing global growth with crude oil prices sinking on worries about weakening world demand and oversupply.
US crude futures dived 7% the previous day, suffering their biggest one-day loss in more than three years.The contracts last stood at $55.72 per barrel following a descent to $54.75 overnight, their lowest since November 2017.
OPEC warned on Tuesday that a supply glut could emerge in 2019 as the world economy slows and rivals increase production more quickly than expected.
The greenback remained subdued as traders shrugged off the early gains after a report from Wall Street indicated high-level US-China trade talks have resumed ahead of a meeting between US President Donald Trump and Chinese President Xi Jinping later this month.
The Journal said Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He spoke by telephone Friday about a deal that would ease trade tension.
Also, traders seemed reluctant to make more significant moves ahead of the release of closely watched reports including US consumer price inflation, retail sales and industrial production in the coming days.
Sensex ends flat; IT and pharma stocks drag on rupee strength.