USD/INR is closed at 69.9325 against its open 68.4700.The pair closed at record high Monday as US sanction against Turkey, Iran and Russia coupled with ongoing US-China trade conflict has increased demand for the safe-haven greenback.
The greenback surged to 14-month high against other major currencies as investors sought safe haven assets amid concerns over Turkey financial turmoil and upbeat US inflation data.
Subsequently last week, US President Donald Trump announced that he has authorised the doubling on steel and aluminium tariffs on Turkey.
"I have just authorized a doubling of Tariffs on Steel and Aluminium with respect to Turkey as their currency, the Turkish Lira, slides rapidly downward against our very strong Dollar!" said Trump in a post on Twitter.
Trump added, "Aluminium will now be 20% and Steel 50%. Our relations with Turkey are not good at this time!"
On the US economic front, the Labour Department reported a modest increase in consumer prices in the month of July.
The Labour Department said its consumer price index increased by 0.2% in July after inching up by 0.1% in June. The increase in prices matched economist expectations.
Also, excluding food and energy prices, the core consumer price index edged up by 0.2% in July, matching the increases seen in the two previous months as well as expectations.
BSE Sensex closed 224.33 points lower at 37,644.90, while the Nifty 50 ended 73.75 points down at 11,355.75.