Rupee Strengthens By 40 Paise As Oil Prices Slide On Ceasefire Announcement
NEW DELHI — The Indian rupee strengthened for a fourth straight session on Wednesday, gaining 40 paise against the U.S. dollar as easing geopolitical tensions and a sharp drop in oil prices lifted market sentiment.
The rupee rose 0.4 percent to 92.61 against the dollar, compared with its previous close of 93.
The gains followed a temporary ceasefire agreement between the United States and Iran, which helped calm global markets after weeks of volatility linked to the West Asia conflict.
President Donald Trump announced a two-week pause in hostilities and called for the reopening of the Strait of Hormuz, a key global oil transit route. He said in a post on Truth Social that U.S. forces had been instructed to stand down, shortly after issuing strong warnings that included references to the “death of a civilisation.”
Oil prices fell sharply in response to the de-escalation. Brent crude dropped nearly 16 percent, or $17.39, to an intraday low of $91.88 per barrel, while U.S. West Texas Intermediate crude fell nearly 20 percent, or $21.90, to $91.05.
Lower oil prices tend to support the rupee, as India is a major importer of crude.
Domestically, the Reserve Bank of India also supported stability by keeping the benchmark repo rate unchanged at 5.25 percent.
Analysts said the broader relief rally across asset classes would depend on whether the ceasefire holds and whether energy flows through the Strait of Hormuz normalize.
“Ceasefire has been tentatively accepted by Iran, though the possibility of violations remains, with Israel continuing strikes that could trigger retaliation,” analysts said.
They added that the rupee’s current levels appear favorable for importers, even as foreign portfolio investors continue to remain sellers in Indian equities.
Meanwhile, precious metals prices rose, tracking gains in global markets. Gold futures for June 2026 were trading at Rs 153,944 per 10 grams, up Rs 3,655 or 2 percent, while silver futures for May rose Rs 13,422, or 6 percent, to Rs 244,770 per kilogram on the Multi Commodity Exchange. (Source: IANS)
