USD/INR closed at 72.66 against its open at 72.79.Dollar closed lower Tuesday tracking drop in crude oil prices amid lower than expected India's inflation data.Big slide in crude oil prices has led to a correction in rupee, we can might see FPI flows to return after yesterday's inflation data. Standard Chartered Bank along with others banks sold.
Brent crude oil futures for delivery in January traded 0.86% down at $69.52 on Tuesday.
Meanwhile, India's retail inflation moderated to 13-month low, staying below the Reserve Bank of India's medium-term target of 4% for the third-consecutive month on favourable base effect in food prices, government data showed Monday, leading economists to believe the central bank may postpone rate hike to next fiscal.
India's Consumer Price Index-based inflation accelerated at a slower pace of 3.31% in October compared to downwardly revised 3.70% in the previous month, data from Ministry of Statistics & Programme Implementation showed Monday.
However, the core inflation rose to 5.8% in September from 5.9% in the previous month.
Nifty closed up at 10,582.5, while the Sensex closed at 35,144.49.