Dollar closed at 65.0100 against its opening of 65.3600. Dollar pair fell to over one-week low Wednesday on selling by exporters amid overseas fund inflows into local stocks after Reserve Bank of India Monetary Policy Committee meet outcome today, where it kept its policy repo rate unchanged at 6%. Large amount of exporters selling was also seen in the market weighing on the spot pair as they expect the pair to drop further. Treasury officials opined that the central bank will maintain a fine balance between conflicting interest of abating growth and rising inflation while maintaining status-quo at the October policy meet. MPC may revise India's growth forecast lower while keeping the repurchase rate steady in October policy meet on concern over quickening retail inflation. 

The dollar rally halted as investors await the release of US jobs data due later this week. Investors believe that a better than expected non-farm payrolls data will justify Federal Reserve's prospect of another interest rate hike this year. Also, investors have started betting who could be new Federal Reserve Chief - Jerome Powell versus Kevin Warsh. Powell is more dovish and market expects him to be next chief.

Sensex provisionally ends 22945, or 0.72 percent, higher at 31,725.45 with 20 components in green.

INTERNATIONAL

Oil prices eased over caution that a price rally that lasted for most of the third quarter would not extend through the last three months of the year.

Gold prices rose after hitting a 7-week low in the previous session, buoyed as the dollar pulled back from a 1-1/2-month high against a basket of currencies.
 

Japan's services sector expanded in September at the slowest rate in 11 months as the pace of new orders eased, though a raft of other data suggest the economic recovery remains intact even as momentum may have ebbed slightly in the third quarter.

Britain and its European Union partners have agreed to ask the other members of the World Trade Organization (WTO) to maintain the current level of quotas for farm produce after Brexit, EU sources said.