USD/INR closed at 72.01 Against its opening at 72.20. Dollar/rupee closed flat Wednesday tracking a strong greenback amid risk-aversion on concerns over a government shut-down in the US amid Brexit related tension.
The greenback surged against its peers on Wednesday, supported by a rebound in US yields and weakness of the pound as its battering from uncertainty about Brexit continued.
Media reports that UK Prime Minister Theresa May's parliamentary colleagues believed they had sufficient numbers to mount a no-confidence vote in her leadership.
Also, US President Donald Trump threatened on Wednesday to shut down the federal government if he does not secure funding for the Mexican border wall in an acrimonious meeting with Democrats in the Oval Office.
Dollar index traded at 97.38 during early Asian trade Wednesday compared with 96.92 at close of Indian market Tuesday.
Meanwhile, Asian stocks opened higher on Wednesday with shares of automakers in China, Japan and South Korea climbing after reports that China would cut tariffs on car made in the US to 15% from the current 40%.
Also, reports of US and Chinese officials had discussed a road map for the next stage of trade talks, which Trump called "very productive, further led gains in Asian stocks.
Sensex provisionally ends 625 points higher with 30 components in the green.