INR extends rebound; Deep losses in dollar supports

The Indian rupee extends rebound in opening trades on Wednesday tracking deep losses in dollar overseas coupled with positive cues from local equities. INR opened at Rs 91.60 per dollar and hit a high of 91.57 before easing back to 91.64 so far during the day. Domestic shares are seen opening higher on Wednesday amid trade optimism after Commerce Minister Piyush Goyal said the ambitious India-EU free trade agreement is likely to be implemented within the 2026 calendar year. Yesterday, INR rebounded from its all-time low levels and gained 19 paise to close at 91.71 against the US dollar, amid weakness in US dollar index and India-EU FTA announcement. The deal over India-EU FTA boosted domestic market sentiments. Local equities also ended modestly higher after India and the European Union confirmed that they had signed a historic trade pact. The giant free trade deal will cut or eliminate tariffs on almost 97 percent of European exports, saving up to 4 billion euros ($4.75 billion) annually in duties, the 27-nation bloc said. For India, the tariff cuts with the EU will lead to more exports in labor intensive sectors that will help partly offset the impact of U.S. tariffs.

 

Powered by Capital Market - Live News