Dollar closed at 64.0950 against its opening at 64.1800. Dollar fell during afternoon trades on selling by banks across segments likely for exporters. In a mix geo-political escalation and a possible ECB, Fed tightening this year but the markets have not yet factored any these of these. In fact, the currency markets have been relatively very stable. The dollar plunged against its major peers as investors turned sceptical of a Federal Reserve rate increase after comments from Fed Governor Lael Brainard. In a speech Tuesday, Brainard said the US central bank should be cautious about raising interest rates amid the economy's "persistent failure" to reach its 2% inflation target. Asian stocks fell as nations grapple with how to deal with escalating provocations from North Korea, while was near its strongest level for the year. North Korea successfully tested a hydrogen bomb that can be mounted onto an intercontinental ballistic missile. This was North Korea's sixth nuclear test since 2006 and its most powerful to date.

Sensex provisionally ends down 137.70 points with 21 components in the red.

INTERNATIONAL

Asian stocks tracked Wall Street's slide overnight while the dollar was on the defensive with tensions in the Korean Peninsula showing few signs of abating.

Australia's economy rebounded last quarter as consumers and government spent freely after a weather-beaten start to the year, while a long downturn in mining investment finally loosened its deadening grip on growth.

Japanese Prime Minister Shinzo Abe said on Wednesday that he wants North Korea to understand it has “no bright future” if it continues on its current path and that the reclusive country needs to change its policies.
 

Aussie eased in Asia as GDP figures for the second quarter came in slightly below expectations and the dollar held weaker against the yen on Wednesday despite disappointing wages data from Tokyo with investors watching North Korea for signs it could test an ICBM on its founding day, Sept. 9, that could invite a response to use anti-missile technology to knock it down.

Crude oil prices dropped in Asia on Wednesday with a first weekly data look at the impact of Hurricane Harvey ahead with industry estimates from the American Petroleum Institute and caution in the market as Hurricane Irma heads toward Florida.

Gold was up for a fifth day  as geopolitical risks over North Korea remained elevated, and as low U.S. inflation concerns left some Federal Reserve officials backing delays in further interest rate hikes.