Why did the Indian rupee close lower against the US dollar?

The Indian rupee closed lower, down 11 paise, due to sustained foreign fund outflows that negated initial gains.

What led to the rise in Indian stock markets?

Indian stock markets, including the BSE Sensex and NSE Nifty, rose significantly following the announcement of a free trade agreement between India and the European Union.

What factors impacted investor sentiment despite the FTA news?

Investor sentiment was impacted by ongoing geopolitical tensions and continued selling pressure from foreign funds.

Home / Business and Economy / Rupee Snaps Gains Amidst Outflows, FTA Hopes

Rupee Snaps Gains Amidst Outflows, FTA Hopes

28 Jan

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Summary

Indian rupee declined 11 paise against the US dollar.
Indian stock markets rose due to the India-EU free trade agreement.
Foreign fund outflows and geopolitical tensions impacted sentiment.

Rupee Snaps Gains Amidst Outflows, FTA Hopes

The Indian rupee experienced a downturn, settling 11 paise lower at 91.79 against the US dollar. Initial gains, spurred by a softening dollar index and an anticipated trade breakthrough with Europe, were erased.

This reversal coincided with sustained outflows from foreign funds, which negatively impacted market sentiment. Despite the currency's decline, domestic equity markets showed strength.

The BSE Sensex recorded a significant jump of 487.20 points, closing at 82,344.68. The NSE Nifty index also climbed, ending the session up 167.35 points at 25,342.75.