The Indian rupee appreciated sharply by 58 paise to 94.60 against the US dollar in early Monday trade, supported by a steep fall in global crude oil prices following US President Donald Trump’s announcement of a peace agreement between the United States and Iran.
At the interbank foreign exchange market, the rupee opened at 94.70 and strengthened further to 94.60, compared to its previous close.
On Friday, the currency had already surged 67 paise to close at 95.18 against the greenback, marking a continued upward trend.
The rally in the rupee was driven by easing geopolitical tensions after the US and Iran reportedly finalised a deal to end their 107-day conflict and reopen the Strait of Hormuz, a key global oil shipping route responsible for nearly one-fifth of global crude movement.
The agreement was signed in Switzerland, with a formal signing expected on June 19.
US President Donald Trump announced on Truth Social that the deal would restore oil flow and lift the US naval blockade on Iranian ports, easing pressure on global energy markets.
Market experts said the rupee’s movement was strongly influenced by falling crude prices and improved global risk sentiment. The peace deal is expected to improve India’s external balance outlook for FY27 by reducing pressure from high oil imports.
The rupee had earlier weakened to 96.96 in May. It may trade in the 94.60–94.80 range.
The dollar index also weakened, falling 0.22% to 99.53, further supporting emerging market currencies. Brent crude declined by 4.66% to $83.26 per barrel in futures trade.
Domestic equity markets also strengthened, with the Sensex rising 1,112.70 points to 76,648.74 and the Nifty gaining 335.55 points to 23,956.40.
However, foreign institutional investors remained net sellers, offloading ₹1,082.18 crore worth of equities on Friday.
India’s forex reserves also saw a marginal decline of $711 million to $681.61 billion for the week ended June 5, mainly due to lower foreign currency assets, according to the RBI.
