Indian Rupee strengthens to near 94.78 amid US-Iran peace deal hopes despite higher oil prices.
The Indian Rupee (INR) opened stronger against the US Dollar (USD) at the start of the Reserve Bank of India’s policy week, with the USD/INR pair sliding to near 94.78. The currency’s gains come despite a 2% rise in WTI oil prices to $89.00 after hitting a month-low of $85.41 on Friday.
Oil price recovery typically pressures oil-importing economies like India, but optimism over a potential US-Iran permanent peace deal has supported the INR. Geopolitical tensions had eased following comments from US and Iranian officials indicating progress in negotiations.
US President Donald Trump stated Washington seeks to prevent Iran from developing or acquiring nuclear weapons, introducing stricter terms for a deal. Iran’s Foreign Minister later acknowledged ongoing discussions, further boosting market sentiment.