Dollar closed at 64.0450 against its opening at 64.0375. Dollar ended flat due to selling by foreign and private banks likely for exporters amid overseas fund inflows into local stocks down tracking subdued greenback as investors doubt that the Federal Reserve will raise interest rates third time this year. After dovish comments from the Federal officials, investors have started losing hopes of one more rate hike this year. The greenback remained subdued against its major peers as investors rekindled their doubts over Federal Reserve monetary tightening after dovish comments from Fed policymakers.The Fed Governor Brainard said that the US inflation is "well short" of the Fed's target and he would not support further rate hike without signs of a pickup in inflation. If inflation persistently falls short of the central bank's 2% target, "it would be prudent to raise the federal funds rate more gradually. Separately, Minneapolis Fed President Neel Kashkari suggested that the recent rate increases may have hurt the US economy.
On the US economic front, a report released by the Commerce Department on Wednesday showed the US trade deficit came in slightly wider in the month of July. The Commerce Department said the trade deficit widened to $43.7 billion in July from a revised $43.5 billion in June. After reporting a slowdown in the pace of growth in US service sector activity in the previous month, the Institute for Supply Management released a report on Wednesday showing a rebound in the pace of growth in the month of August.
The ISM said its non-manufacturing index climbed to 55.3 in August after falling to 53.9 in July. Economists had expected the index to rebound to 55.8.
Sensex provisionally ends down 7.77 points with 13 components in the red.
INTERNATIONAL
Asian shares bounced back after U.S. President Donald Trump and congressional leaders unexpectedly agreed to raise the government debt limit until December, eliminating the near-term risk of a government shutdown.
Crude oil prices dipped in Asia after a weaker than expected API build in crude oil invetories failed to lift sentiment with Hurricane Irma approaching the U.S. East Coast and recovery eforts still underway in the aftermath of Hurricane Harvey.
Aussie dropped slightly in Asia on disappointing trade figures as an apparent deal to raise the until Dec. 15 came in focus, though investors noted that President Trump's willingness to work with Democrats on the extension has riled hard-line Republican leaders.
European Commission wants to bolster cyber security in the EU by increasing investment in technology, setting stricter consumer safeguards and stepping up diplomacy to deter attacks by other nations, among other measures.
Gold prices fell slightly in Asia with an apparent deal to raise the U.S. debt ceiling until Dec. 15 in focus, though investors noted that President Trump's willingness to work with Democrats on the extension has riled hard-line Republican leaders.