The INR strengthens against the USD after oil prices fall on reports of a potential US-Iran peace agreement.
The Indian Rupee (INR) rose sharply against the US Dollar (USD) in early trading Friday, with the USD/INR pair falling to near 95.25. The move follows remarks from US President Donald Trump indicating planned strikes on Iran were canceled, easing fears of prolonged Middle East conflict and pressuring oil prices.
Oil prices declined further after Trump stated both nations are close to finalizing a permanent peace deal. The MCX Crude Oil contract, though rebounding slightly, traded 1.62% lower at 8,207. Lower oil prices benefit oil-importing economies like India by reducing import costs.
Trump added that Iran’s leadership had agreed to a memorandum of understanding (MoU), though Tehran later denied finalizing any document. The risk rally and weaker USD contributed to the INR’s gains.