Rupee opens stronger against U.S. dollar after pause in Iran strikes
NEW DELHI — The Indian rupee opened higher against the U.S. dollar Tuesday, recovering from record lows after U.S. President Donald Trump announced a five-day pause in strikes on Iranian power and energy infrastructure.
The currency was trading at 93.64 per dollar, compared with its previous close of 93.98, which had marked a record low.
Analysts said the market reacted positively to the temporary easing of tensions, though sentiment remains cautious.
“The market has welcomed the five-day pause but not with conviction, and any signs of further de-escalation could pull the USD/INR lower,” analysts said.
The rupee had weakened sharply in the prior session, slipping below 93.95 and declining 0.37 percent as escalating tensions in West Asia weighed heavily on the currency.
Rising crude oil prices have also pressured sentiment, with India’s status as a net importer leading to higher outflows and a widening import bill.
Analysts warned that sustained elevated oil prices could push inflation higher and weigh on economic growth, adding further strain on the currency.
“The macro backdrop remains fragile, and currency weakness is expected to persist as long as geopolitical tensions and energy prices remain elevated,” said Jateen Trivedi, vice president and research analyst for commodities and currency at LKP Securities.
In the near term, the rupee is expected to trade in a weak range of 93.25 to 94.25, with sentiment likely to remain negative unless there is meaningful de-escalation, market watchers said.
Investor sentiment was supported after Trump said the United States and Iran had held “very good and productive conversations” and that Washington would delay potential strikes for five days.
However, Iran’s parliamentary speaker Mohammad-Bagher Ghalibaf denied that any talks had taken place, contradicting Trump’s statement.
Analysts said the rupee’s rebound reflects easing geopolitical concerns, but its sustainability will depend on further clarity around global developments and crude oil price trends. (Source: IANS)
