The Indian rupee strengthened to about 95.2 per dollar, recovering from the previous session’s losses as easing crude oil prices improved market sentiment. The rebound followed a sharp drop in global oil benchmarks amid optimism over a possible diplomatic breakthrough between the United States and Iran. Brent crude slid to $88.80 per barrel, its lowest level in two months, after President Donald Trump indicated that a peace agreement with Iran could be reached as early as the weekend.
The more positive outlook supported Asian equity markets, while US Treasury yields and the dollar weakened. However, investors remain cautious, noting that earlier signs of progress in US-Iran negotiations have not yet led to a final deal. The Reserve Bank of India has introduced measures to attract dollar inflows and shore up the rupee, but the currency’s recent fall below pre-intervention levels underscores persistent pressures. According to analysts, durable support for the rupee will depend on a sustained, meaningful decline in oil prices.
