USD/INR Closed at Rs 68.44/$1 Thursday compared to Rs 68.5650/$1 at previous close on wednesday. Dollar/rupee closed lower on Thursday on selling by foreign banks tracking a weak greenback after Fed Chair Powell reinforced prospects of a US interest rate cut later this month. Dollar is weak after Fed Powell's dovish comments yesterday. Foreign banks are selling in spot.

The dollar index, which tracks the movement of the greenback against a basket of six major currencies, traded at 96.89 compared with 97.44 at close of spot rupee market on Wednesday.In a speech before his congressional testimony on Wednesday, Fed Chair Powell confirmed that the US economy is still under threat from disappointing factory activity, tame inflation and a simmering trade war.Powell said the central bank stands ready to "act as appropriate".

In his testimony, Powell said the economic outlook had not improved in recent weeks and emphasized several risks, while played down developments that have buoyed hopes of less aggressive Fed rate cut. Powell said that "uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the US economic outlook.

 Nifty closed up at 11,582.90, while  Sensex settled higher at 38,823.11.