Dollar closed at 65.3750 against opening at 65.1700. Dollar closed higher as dollar strengthens on upbeat US economic data as well as optimism about the outlook for tax reform.The greenback surged to highest level since Jul 26 against its major currencies on optimism over Fed rate hike after a batch of largely upbeat US economic data amid optimism about the outlook for tax reforms. Positive sentiments were generated after the House of Representatives approved a $4.1 trillion budget resolution, taking a key step in efforts to a tax overhaul. The budget resolution includes major spending cuts but is largely seen as a vehicle for Republicans to implement their proposed tax cuts. Also, the bill unlocks the reconciliation process, allowing Republicans to pass tax reform with a simple 51-vote majority in the Senate. On the global front Asian shares traded higher on optimism over US tax reform that led to surge in the share prices and drove dollar to seven week high. Investors cheered increased prospects for a tax overhaul with Congress moving closer to agreement on a budget resolution.
Also, investors await the release of much awaited monthly labour market report set to be released later today.
Sensex provisionally ends 244.74 points higher with 24 components in green.
INTERNATIONAL
Asian stocks rose after optimism over U.S. tax reform plans lifted Wall Street shares to new highs, and the dollar hovered near a seven-week peak as new indicators pointed to solid economic growth.
Oil markets were cautious on Friday as traders monitored a tropical storm heading for the Gulf of Mexico and as China remained closed for a week-long public holiday.
Gold prices dipped in Asia as investors awaited nonfarm payrolls in the U.S. even thought he data will likely be widely skewed by the effects of hurricanes in Texas and Florida.
Japanese Finance Minister Taro Aso said he would meet U.S. Vice President Mike Pence in Washington D.C. on Oct. 16 for the second round of an economic dialogue between the two countries.