The Indian rupee displayed positive momentum against the dollar for the fourth consecutive session, following a global equities upsurge after the United States and Iran reached a two-week ceasefire agreement, alleviating market uncertainties stemming from the West Asia conflict. The rupee strengthened by 0.4% to 92.61 against the dollar compared to its previous close of 93.
US President Donald Trump’s announcement of a temporary ceasefire with Iran, aimed at reducing geopolitical tensions, contributed to this positive trend. The proposed ceasefire involves a two-week halt in hostilities and the immediate reopening of the Strait of Hormuz. Trump confirmed this decision via his social media platform, Truth Social, instructing US forces to stand down shortly after issuing stern warnings.
Meanwhile, the Reserve Bank of India maintained the repo rate at 5.25%. Oil prices also experienced a significant decline, with Brent crude futures dropping nearly 16% to $91.88 and US WTI crude plummeting almost 20% to $91.05. The ceasefire declaration, made just before a potential escalation in bombing Iran, has rejuvenated market sentiment after weeks of turmoil caused by the Middle East conflict.
Analysts emphasized that the sustainability of the relief rally across various assets hinges on the ceasefire’s adherence and the normalization of energy flows through the Strait of Hormuz. They noted that while Iran tentatively accepted the ceasefire, the risk of violations remains, especially with ongoing Israeli strikes that could provoke retaliation. The current rupee levels are advantageous for importers, while foreign portfolio investors continue to divest from equities.
Furthermore, gold and silver prices on the Multi Commodity Exchange (MCX) opened on a positive note, mirroring the upbeat trends in global bullion markets. Gold futures (June 2026) were priced at Rs 1,53,944 per 10 grams, marking a Rs 3,655 increase or 2%. Similarly, silver futures (May) traded at Rs 2,44,770 per kg, reflecting a Rs 13,422 surge or 6%.
