USD/INR Closed at 71.10 against its opening at 71.00. USD/INR Ended down Monday on selling by exporters amid tracking weakness in greenback.Exporters selling was seen in the market as dollar remained weak globally.
The greenback slumped against its major peers as traders speculated that the Federal Reserve may hold interest rates unchanged this week. After raising interest rates as many as four times last year, the Fed said there could be two more increases in 2019. Subsequent comments from some Fed officials suggest a likely pause in rate hikes sometime soon.
Meanwhile, besides the prospects of a pause in interest rate hikes, lingering concerns about US-China trade issues and the partial government shutdown in the US that entered its 35th day, also weighed on the dollar, and prompted traders to seek the safe haven of the yellow metal.
According to reports on Friday, US President Donald Trump has announced that White House and congressional leaders reached a short-term deal to end the partial government shutdown.Trump is reported to have said that he could agree to reopen the shuttered parts of government through Feb 15.
Also, Trump said to have hinted that if legislation is not passed to fund his border wall by mid-February, he would be forced to declare a national emergency at the border.
Dollar index, which weighs greenback against a basket of six major currencies, traded at 95.76 Monday compared to 96.31 at close of Indian market on Friday.
Meanwhile, Crude oil futures edged lower after US energy firms added rigs for the first time this year in a sign that crude production will rise further. Brent futures for March delivery traded 0.45% down at $61.36 a barrel. On the US economic front, Bakers hughes US oil rig count 862 in December compared to the 852 in November.
Sensex provisionally ends 313 points lower with 22 components in the red.