Dollar is closed at 67.3250 against its opening of 67.1500. Dollar ended little changed on lack of significant triggers to drive the market. During intraday trades, buying by oil importers was offset by the weakness in greenback and selling by exporters. The tepid growth in US inflation rate took off the boil in the dollar demand, leaving investors to keep hope for a rather gradual pace of rate hike by Federal Reserve. Rupee is tracking the dollar movement. After US published its consumer inflation figure which fell short of expectation, US 10-year yields fell, retreating the dollar from its four-month high levels. The greenback faltered against its major peers on pessimism following smaller than expected increase in consumer prices in the month of April. On the US economic front, the Labour Department said its consumer price index increased by 0.2% in April after falling by 0.1% in March.
Excluding food and energy prices, core consumer prices inched up by 0.1% in April after rising by 0.2% in the previous month. Core prices had been expected to increase by 0.2%.
A separate report from the Labour Department showed initial jobless claims unexpectedly came in unchanged in the week ended May 5th.
The report said initial jobless claims came in at 211,000, unchanged from the previous week's unrevised level.
BSE Sensex closed 289.52 points higher, while the Nifty 50 ended 89.95 points up at 10,806.50.
INTERNATIONAL
Asian shares rallied on Friday as risk appetite got a boost from soft U.S. inflation, helping alleviate worries of faster rate hikes by the Federal Reserve, while investors also cheered U.S.-North Korean steps to further ease tensions on the Korean Peninsula.
Oil prices stayed near multi-year highs on Friday morning in Asia as looming U.S. sanctions against major crude exporter Iran threatened to tip the oil market into undersupply.
Sri Lanka’s central bank kept monetary policy on hold after a deceleration in inflation allowed room for a pause.
Cryptocurrency prices fell on Friday, with Ripple and Litecoin down more than 7%. China-based Huawei Technology made headlines as the world’s third-biggest handset maker is letting its users to download Bitcoin Wallets on their mobile devices for the first time.