USD/INR closed at 69.87 against its opening at 69.83. USDINR rebound, later in the day, on month-end dollar demand amid a strong greenback after FII inflows into local stocks peters out. Some amount of FII inflows into local stocks is supporting the local currency. But as the flows peter out, month-end dollar demand and a strong dollar will emerge as factors. Also few investors booked profit ahead of the GDP data from India.
The US and China trade tension deepened after Chinese newspapers reported that China could use rare earths to strike back at US after President Donald Trump remarked he was "not yet ready" to make a deal with China over trade. In addition, Brent crude futures traded $ a barrel Brent futures for July delivery traded 0.24% down at $69.62 a barrel on Thursday morning.The dollar index, which tracks the movement of greenback against a basket of six major currencies, traded at 98.12 Thursday compared to 98 at close of Indian market on Wednesday.
Arun Jaitley, India’s finance minister, has asked Prime Minister Narendra Modi not to give him a ministerial position in the new government due to ongoing health problems.
Sensex provisionally ends 329 points higher with 21 components in the green.