Dollar/rupee closed at 69.44 against its opening of 69.45. Dollar/rupee extend losses during intraday trades on selling by foreign banks tracking a weak greenback. Foreign banks are selling in spot mainly tracking the weak dollar. The greenback continued retreating against its other major counterpart after the US President Donald Trump called off tariff threats on Mexico, weighing on safe haven dollar demand amid increased bets on a Fed rate cut later this year.
Oil prices retreated as major producers Saudi Arabia and Russia had yet to agree on extending an output-cutting deal amid US-China trade tensions continued to threaten demand for crude.
Brent futures for August delivery traded at $62.49 a barrel on Tuesday.The greenback remained subdued against its other major counterpart on looming fear of another round of tariff war between the US and China amid bets for a Fed rate cut later this year.
The dollar index, which tracks the movement of the greenback against a basket of six major currencies, traded at 96.79 Tuesday compared to 96.86 at close of Indian market on Monday.
Sensex closed 165.94 points, higher at 39,950.46 while Nifty settled at 11,962.65.