USD/INR closed at 71.85 Against its opening at 72.46.. Dollar in both onshore and offshore market pared gains during afternoon trade Tuesday as stocks rebounded on buying at lower levels while trend showed Congress ahead in Rajasthan and Chhattisgarh while both the parties locked in a tight race in Madhya Pradesh
The Reserve Bank of India governor Urjit Patel on Monday resigned with immediate effect citing personal reasons.
The resignation came just days ahead of RBI Board meeting on Dec 14 wherein the members would discuss the governance structure of the central bank, including setting up some oversight committee.
Local stocks are expected to open lower Tuesday ahead of assembly election results outcome amid mixed global cues as political concerns linger.
Meanwhile, the greenback surged against major peers as risk-sentiments remain weary on simmering US-China trade tension and concerns around Brexit.
On Monday, UK Prime Minister Theresa May postponed a parliamentary vote on her Brexit deal to seek more concessions but the European Union refused to renegotiate and lawmakers doubted her chances of winning big changes.
On the trade front, a bail decision is pending for the jailed chief financial officer of China's Huawei Technologies. Her arrest last week roiled global markets by raising worries over prospects for US-China talks.
US job openings rebounded in October, but hiring continued to lag, suggesting a recent slowdown in job growth was most likely because employers could not find qualified workers.
Sensex provisionally ends 207 points higher with 22 components in the green.