Dollar closed at 63.9500 against its opening at 64.9500. Dollar ended at two-week low on likely overseas fund inflows into local stocks amid globally weak greenback. Mainly dollar weakness due to concerns over US trade deficit after the release of US CPI data is weighing on the spot, also FII inflows into local equity market supported the rupee.The greenback fell to one-week low against its major peers after consumer prices increased more than projected, firming belief that the Federal Reserve would have to raise interest rates more quickly than expected. Consumer prices in the US increased by more than anticipated in the month of January, reported the Labour Department on Wednesday. The Labour Department said its consumer price index jumped by 0.5% in January after edging up by a revised 0.2% in December.
Also, retail sales in the US unexpectedly fell in the month of January, said the Commerce Department on Wednesday. The Commerce Department reported that the retail sales dropped by 0.3% in January compared to economist estimates for a 0.2% up tick in sales. Meanwhile, a separate report released by the Commerce Department on Wednesday showed business inventories in the US slightly increased by more than anticipated in the month of December.
BSE Sensex closed higher by 141.52 points at 34,297.47, while the Nifty 50 ended 44.60 points up at 10,545.50.
INTERNATIONAL
Asian shares rose in holiday-thinned trade as they took a lead from the US overnight and shrugged off higher-than-expected consumer prices in the United States.
Japan's core machinery orders tumbled in December at the fastest pace in more than three years and companies expect orders to rise only marginally in January-March, raising concerns that recent gains in capital expenditure may taper off.
Aussie rose after employment data came in mildly better-than-expected on Thursday and the yen held gains despite weak core machinery orders as the dollar stayed under pressure on concerns about the expected surge in US government borrowing.
Oil prices extended gains from the previous session, pushed up by a weak dollar and by comments from Saudi Arabia that it would rather see an undersupplied market than end a deal with OPEC and Russia to withhold production.
Gold dipped in Asia as top buyer China started a market break through Feb. 21 to mark the Lunar New Year and physical trade dipped further with Hong Kong also shut and Singapore on holidays Friday and Monday.