USDINR closed at 68.7700 against the opening at 68.8200. Dollar ended down Wednesday as selling by foreign banks and exporters amid a weak greenback,"Few foreign banks sold during late trades along with exporters who took advantage of the higher levels in the pair,".
US Bureau of Labour Statistics will release inflation on Thursday, analysts expect it to increase 2.9% on year, marking its largest annual rise since February 2012.
Meanwhile, renewed trade war fears between US and China, after US sought fresh $200 billion in tariffs on Chinese imports applied check on investor optimism.
Globally, Asian shares declined early on Wednesday as trade concerns returned to focus.
The US government is seeking additional $200 billion in Chinese goods on which the US is considering imposing tariffs.
The goods on the US government's list would be subject to 10% tariffs, according to a statement from US Trade Representative Robert Lighthizer, who said his office will proceed with a public notice and comment period before the levies are officially imposed.
BSE Sensex closed 26.31 points up at 36,265.93, while the Nifty 50 ended 1.05 points higher at 10,948.30.
GOLD
Gold prices fell on Wednesday as the dollar firmed against the yuan after the United States threatened to impose additional tariffs on Chinese goods, escalating trade tensions between the world’s two largest economies.
OIL
Oil prices fell on Wednesday, with Brent dropping by more than $1 at one point, after U.S. President Donald Trump threatened to levy new trade tariffs on China.
ASIAN NEWS
Indonesia has overturned its ban on Chinese video app Tik Tok after it agreed to censor “negative content”, the Communications Ministry said on Wednesday.