Dollar closed at 66.3750 against its opening at 66.4100. Dollar pared losses during afternoon trades, on buying by oil importers after Brent crude oil price breached $75 a barrel. Oil prices hit their highest levels since late 2014 on Tuesday, on expectations of renewed US sanctions against Iran and as OPEC continues withholding supplies amid strong demand. The greenback pared gains as investors booked profits taking advantage of the sharp rally. During overnight trades, the dollar breached after the release of the better than expected existing home sales data while investors look forward to a number of important economic reports later this week. The US will release this week US new home sales and consumer confidence data later today, while durable goods orders, weekly jobless claims and international trade slated for Thursday. GDP and consumer sentiment are also scheduled for Friday.
Sensex provisionally ends 172 points higher with 19 components in the green.
INTERNATIONAL
Asian stocks bounced from near two-week lows as investors paused for breath following the heavy selling of recent sessions and waited to see if the dollar's rally was sustainable.
Japan's steel industry federation said that new import tariffs on steel imposed by the United States have not yet hit the Asian steel market, but said the industry is monitoring the situation closely for any future impact.
Flaring geopolitical tensions in the Middle East coupled with expectations for a decline in U.S. stockpiles are boosting oil to trade near $69 a barrel.
European Union and the United States appear reluctant to remove preferential trade access for Cambodia's vital garments sector, Fitch's BMI research unit said on Tuesday, despite calls from rights groups for targeted sanctions in the wake of a political crackdown ahead of a July general election.