Rupee Slides 11 Paise to 91.79 Against Dollar Amid Fund Outflows

New Delhi | January 28, 2026 The Indian rupee fell by 11 paise to close at 91.79 (provisional) against the U.S. dollar on Wednesday, as foreign fund outflows and ongoing geopolitical tensions weighed on investor sentiment. Forex traders said the rupee had opened higher, supported by a softening U.S. dollar index and the long-awaited trade breakthrough with Europe, but selling pressure limited gains. At the interbank foreign exchange, the rupee opened at 91.60 and touched an early high of 91.50, before paring the gains to an intra-day low of 91.83. Traders noted that despite the initial optimism, the domestic unit ended in the negative due to sustained outflows and market caution. On Tuesday, the rupee had rebounded 22 paise from record lows to settle at 91.68 against the dollar. The positive sentiment earlier came after India and the European Union concluded negotiations for a free trade agreement (FTA), described as the "mother of all deals." Under this agreement, sectors like apparel, chemicals, and footwear will get duty-free access to the 27-nation EU bloc, while the EU will gain concessional duty access for cars and wines in India, creating a combined market of around 2 billion people. Meanwhile, the dollar index, which tracks the greenback’s strength against six major currencies, fell 0.07% to 96.14. Brent crude traded lower at $67.28 per barrel. In domestic markets, the Sensex rose 487.20 points to 82,344.68, and Nifty gained 167.35 points to 25,342.75, even as Foreign Institutional Investors sold equities worth ₹3,068.49 crore on Tuesday. Rupee Dips to 91.79 Against Dollar as Foreign Funds Exit Despite EU Trade Deal The Indian rupee slipped by 11 paise to close at 91.79 (provisional) against the U.S. dollar on Wednesday, as continuous foreign fund outflows and global tensions weighed on the currency. Forex traders said the rupee initially opened higher, supported by a weaker U.S. dollar index and optimism after a long-awaited trade breakthrough with Europe, but selling pressure kept gains limited. During the day, the rupee opened at 91.60 and hit an early high of 91.50 before dropping to an intra-day low of 91.83. “Despite initial support, sustained foreign fund selling and caution among investors pushed the rupee down,” said market analysts. On Tuesday, the rupee had recovered 22 paise from its all-time low to settle at 91.68 against the greenback. Investor optimism had risen after India and the European Union finalized a free trade agreement (FTA), called the "mother of all deals." Under the agreement, sectors like apparel, chemicals, and footwear will get duty-free entry into the EU, while the EU will receive concessional access for cars and wines in India, creating a combined market of about 2 billion people. Meanwhile, the U.S. dollar index, which measures the greenback’s strength against six major currencies, declined 0.07% to 96.14. Brent crude futures fell 0.43% to $67.28 per barrel. Domestic markets saw positive moves, with Sensex rising 487.20 points to 82,344.68 and Nifty gaining 167.35 points to 25,342.75, even as Foreign Institutional Investors sold equities worth ₹3,068.49 crore on Tuesday.