Dollar closed at 64.5000 against its opening at 64.7100.  Dollar fell intraday on selling by foreign banks likely for exporters on expectation rupee may appreciate further tracking the weakness of the greenback against other major currencies. Dollar open little changed as globally weak greenback may offset likely overseas fund outflows from local stocks. The dollar also fell to two month low against major peers as euro surged after the release of European Central Bank monetary policy meet minutes, which showed extension of its quantitative easing programme.US investors also continue to await more details on the tax reform. Meanwhile, the ECB said it would taper its monthly bond purchases by half to 30 million euro($35.69 million) from January to September, but that it retained the option of extending the program further if needed, minutes of the policy meeting on October 25-26 show. 

On the local front, S&P Global Ratings affirmed India's credit ratings at the lowest investment grade Friday, a week after Moody's Investors Services upgraded the country's rating to one notch above the lowest investment grade. The rating agency reaffirmed India's long-and-short-term foreign and local currency sovereign credit ratings at 'BBB-' and 'A-3', respectively, while keeping its outlook for India stable reflecting the strong economic growth potential of the country over the next two years, sound external accounts position and fiscal deficit expected to remain broadly in line with S&P's forecast.

BSE Sensex closed higher by 45.20 points, or 0.13%, at 33,724.44, while the Nifty 50 gained 9.85 points, or 0.09%, to close at 10,399.55.

INTERNATIONAL

Asian stocks gave back earlier modest gains and fell back from a decade high on Monday, weighed by weakness in the Chinese and South Korean markets, while the euro reached a two-month top against the dollar.

Gold edged higher in Asia  with the market looking ahead to a change of guard at the Federal Reserve this week and setting the stage for the December meeting widely expected to hike rates.

Euro hit a two-month high versus the dollar and held firm against other major currencies on Monday thanks to strong German business confidence and reduced anxiety about political instability in Europe's biggest economy.
 

Profits at China's industrial firms continued to grow at a robust pace last month despite a slight cooling from a sizzling September as companies benefit from strong commodities prices, with mining and heavy industry contributing the biggest gains.

Crude oil prices were mixed in Asia as the market turned cautious ahead of a key OPEC meeting near the end of the week.