USD/INR Closed at 72.91 against its open at 72.60. Dollar ended at one-week high Monday on buying by oil importers as Brent crude oil prices rose above $83 a barrel amid optimism over the last week's Fed rate hike. Foreign banks bought dollars as the Fed after hiking rate said it would continue its policy tightening through 2020 owing to an optimistic outlook for the US economy. Crude oil prices surged after the longest quarterly rally in a decade as a slowdown in American drilling added to supply risks while the US and Saudi Arabia discussed market stability.
West Texas Intermediate for November delivery traded at $73.57 a barrel on the New York Mercantile Exchange, up 0.44%.
Brent for December settlement increased 0.58% at $83.21 on the ICE Futures Europe exchange.
The greenback advanced against its major peers after the US Federal Reserve last week planned for multiple interest rate hikes by 2020.Meanwhile, local stocks opened flat on local fund buying and as government reduced second half borrowing programme that bodes well for bond yield and rupee.
Sensex provisionally ends 339 points higher with 23 components in the green.