USD/INR closed at 68.86 against its opening at 68.8875. USD/INR ended down Tuesday on likely overseas fund inflows into local stocks amid a weak greenback. "Likely FII inflows into local equities weighed on the spot. Also a weak dollar further pulled back spot. Major foreign banks sold dollars.
Local stocks opened higher Tuesday as overseas investors continue to buy local stocks and as higher crude oil prices helped boost appetite for risky assets. The 50-share Nifty rose 0.14% to 11,369.90 on the National Stock Exchange.
Adding to that, the greenback weakened against it major pairs after US 10-year Treasury yields edged higher as fear of a recession hitting the US economy receded.The dollar index, greenback against a basket of six major currencies, traded at 96.50 Tuesday compared to 96.60 at close of Indian market on Monday.
Fed Bank of Boston president and CEO Eric Rosengren said at a conference in Hong Kong that the US economic growth could be "pretty weak" in the first quarter but will likely be much closer to 2-2.5% for the later part of the year, but a central bank pause is the responsible thing to do.Fed funds rate futures are now fully factoring in a rate cut later this year, with about an 80% chance of a move expected in by September.
Also, development on the Brexit frontier provided further relief to safe haven bids. On Monday, Britain's Parliament seized control of the Brexit process from Prime Minister Theresa May, which now puts lawmakers in the driving seat.
Sensex provisionally ends 468 points higher with 24 components in the green.
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