Indian rupee gains for third straight session as oil eases on US-Iran deal
By Aboki Forex —
The Indian rupee strengthened for a third straight session on Tuesday, closing 0.2% higher at 94.56 per U.S. dollar. Investor sentiment stayed supportive as markets awaited more details on the U.S.-Iran peace agreement and guidance from the U.S. Federal Reserve.
The currency opened at 94.6125 and traded within a narrow range of about 10 paisa on either side of the previous close. It touched an intraday high of 94.4950 before pulling back slightly. Traders said importer hedging demand emerged at stronger levels.
Mandar Pitale, Head of Treasury at SBM Bank (India), said the rupee is likely to appreciate toward 94 in the near term before consolidating. He cited foreign inflows from central bank measures and softer oil prices following the end of the war.
The rupee's outlook improved after the U.S.-Iran peace agreement eased concerns over global energy supplies. On Monday, U.S. President Donald Trump announced that Washington and Tehran signed a preliminary agreement to halt the conflict. Negotiations toward a permanent ceasefire are still ongoing.
The deal is expected to allow the reopening of the Strait of Hormuz, a vital shipping route for nearly one-fifth of the world's oil and liquefied natural gas supplies. Oil prices fell as geopolitical tensions subsided, with benchmark Brent crude declining.