USD/INR Closed at 70.48 against its opening at 70.41. USD/INR closed marginally up after opening flat Friday on buying by oil importers after Brent moved above $61 a barrel amid a strong trading in greenback after Fed Chair Jerome Powell's comments.Also, defence related buying supported dollar demand further.
Oil prices were on track for solid weekly gains on Friday after financial markets were lifted by hopes the United States and China may soon resolve their trade disputes, and as OPEC-led crude output cuts tightened supply.
Brent crude oil prices surged higher on optimism supported by comments from the US Federal Reserve chairman that lifted equity markets amid OPEC cutting output and on easing concerns over weak demand growth. Drop in December output from major producers and a more-recent decline in US crude inventories also led to rise in oil prices globally. OPEC oil production fell by 630,000 barrels a day to a six-month low of 32.43 million barrels in December.
Brent crude oil futures for March delivery traded at $61.50 a barrel on Friday.
The greenback surged against major peers after Federal Reserve Chairman Jerome Powell said the US central bank intends to further shrink the balance sheet, hinting that Fed may continue with its tightening monetary policy for now.
The dollar index, which tracks the movement of the greenback against a basket of six major currencies, traded at 95.25 during late Asian trades Friday compared to 95.27 at previous close.
On Thursday, the Fed chair Powell said he saw no near-term risk of a US recession and expects continued momentum in economic data.However, Powell reiterated that the Fed can be patient on monetary policy and can move flexibly and quickly if economic data warrants it.
Sensex provisionally ends 132 points lower with 22 components in the red.