USD/INR closed at 69.3525 against its closing at 69.67. USD/INR ends up Thursday as demand for dollar moves up ahead of swaps auction to Reserve Bank India amid increase oil bids owning to spike in Brent crude oil prices. Dollar demand increased ahead of swaps auction to RBI of $5 billion and the oil price breaching $67 a barrel.
RBI to auction dollar/rupee swap of $5 billion for the 3 years tenor on March 28 which will increase the demand for the dollar. Crude oil futures higher holding four month high on supply cut by OPEC. Investors focused on the production cut and supply disruption in Venezuela, as situation Venezuela remains bleak.
As per the Energy Information Administration report Crude oil inventories fell to 3.9 million barrels in last week which is lower than the expectations.Brent futures for May delivery traded up at $67.74 a barrel on Thursday.
Meanwhile, dollar/rupee in the non-deliverable forward market maturing in one month traded at Rs 69.88/$1 Thursday compared to Rs 69.80/$1 at close of Indian market on Wednesday.The greenback subdued on lesser than expected of US Producer Price Index data.Producer Price Index data released by Bureau of Labor statistics, Department of Labor decreased to 0.1% compared to 0.2% expected by market participants.
Sensex ends flat with 17 components in the green.