The Indian rupee strengthened to around 95.4 per dollar, halting its recent slide as easing geopolitical tensions and softer crude oil prices lifted sentiment across Asian markets. A decline in global energy prices to roughly $91 per barrel helped temper concerns about India’s import bill, while a weaker US dollar provided additional support to the domestic currency.
Investors also evaluated recent steps by the Reserve Bank of India to attract foreign currency inflows. Although demand for dollars from importers remained firm, the rupee’s recovery from recent lows, along with reduced hedging costs, curbed aggressive dollar purchases and eased short-term pressure on the currency. Regional currencies moved higher as reports suggesting a pause in hostilities between Iran and Israel improved risk appetite. Even so, investors stayed cautious, as elevated US Treasury yields—underpinned by expectations that the Federal Reserve will maintain restrictive policy for longer—could cap gains in emerging‑market currencies.
