INR rebounds after India-EU confirm historic FTA

The Indian rupee rebounded from its all-time low levels and gained 19 paise to close at 91.71 (provisional) against the US dollar on Tuesday, amid weakness in US dollar index and India-EU FTA announcement. The deal over India-EU FTA boosted domestic market sentiments. However, rising commodity and crude oil prices capped sharp gains. 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. The benchmark BSE Sensex ended the session up 319.78 points, or 0.39 percent, at 81,857.48 after a choppy ride on worries over U.S. President Donald Trump's additional tariffs announcement on South Korea and escalating U.S.-Iran tensions. The broader NSE Nifty index closed up 126.75 points, or 0.51 percent, at 25,175.40.

 

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