Dollar closed at 64.8200 against its opening at 64.8700. Dollar fell during European trades Wednesday on selling by foreign and private banks likely for exporters. Also, exporters selling on fears that the spot pair may further soften also weighed on the spot. Dollar fell after yesterday's data showed softer pace of inflation growth and also US President fired Secretary of State, also exporters selling will be seen. The greenback faltered against its major peers after Labour Department data showed that US consumer prices escalated moderately in February, at a softer pace than a month earlier. Also, fresh political turmoil after US President Donald Trump announced he would replace Secretary of State Rex Tillerson dented the dollar further.Trump fired Secretary of State Rex Tillerson on Tuesday after a series of public rifts over policy on North Korea, Russia and Iran, replacing his chief diplomat with hawkish CIA Director Mike Pompeo. Consumer prices rose 0.2% in February from 0.3% rise in January, according to the Labour Department. On an annualised basis CPI rose 2.2%.
BSE Sensex closed lower by 21.04 points at 33,835.74, while the Nifty 50 fell 15.95 points to close at 10,410.90.
INTERNATIONAL
Asian shares faltered amid fears of rising U.S. protectionism as President Donald Trump fired his Secretary of State, regarded as a moderate in his administration, and sought to impose hefty tariffs on Chinese imports.
Bank of Japan Governor Haruhiko Kuroda voiced confidence the central bank could engineer a smooth exit from its ultra-loose monetary policy, but said it was too early to debate specifics with inflation still distant from its target.
Oil prices edged up after posting two days of declines at the start of the week.
South Korea's finance minister said the lack of jobs growth is now the country's biggest economic issue.
Gold prices rose to a one-week high on a weaker dollar following U.S. Secretary of State Rex Tillerson’s sudden dismissal, which invigorated concerns of protectionist policies hampering global risk appetite.