The Indian rupee traded around 94.3 per dollar, consolidating after touching a six-week high, as easing geopolitical tensions and softer crude oil prices underpinned sentiment. Oil retreated after Iranian officials signaled progress in negotiations with the United States, with Brent crude for August delivery falling 1.7% to $79.24 per barrel following indications of constructive talks in Switzerland.
Nonetheless, uncertainty lingered after US President Donald Trump cautioned that military action against Iran could resume, even as Vice President JD Vance met Iranian officials under an interim peace arrangement. Market caution was further reinforced by Tehran’s renewed closure of the Strait of Hormuz.
Upside for the rupee was partly restrained as the dollar index hovered just below 101 and the benchmark 10-year US Treasury yield inched higher, though it stayed under recent highs. Investors are now turning their attention to upcoming US inflation and growth data for signals on the Federal Reserve’s policy trajectory.
