INR settles in negative amid sustained foreign fund outflows

The Indian rupee pared initial gains and settled for the day in the negative territory, down 11 paise at 91.79 (provisional) against the US dollar, as the support from the retreating dollar index was negated by sustained foreign fund outflows. Rupee opened higher as the US dollar index softened and a long-awaited trade breakthrough with Europe offered quiet reassurance. Domestic shares also rose notably on Wednesday, extending gains from the previous session after the announcement of a free trade agreement (FTA) between India and the European Union (EU). The benchmark BSE Sensex jumped 487.20 points, or 0.60 percent, to 82,344.68 while the broader NSE Nifty index closed up 167.35 points, or 0.66 percent, at 25,342.75. However, selling pressure from foreign funds and ongoing geopolitical tensions dented investors' sentiments. At the interbank foreign exchange, the rupee opened at 91.60 and touched an early high of 91.50, but pared the gains to touch an intra-day low of 91.83 against the greenback.

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