The Indian rupee strengthened by 39 paise to open at 95.37 against the US dollar on Friday, 12 June, supported by a sharp decline in crude oil prices after US President Donald Trump indicated that a peace agreement with Iran could be reached soon. The development eased concerns over oil supply disruptions and provided relief to the domestic currency.
Brent crude slipped to $88.80 per barrel, its lowest level in two months, after Trump said a deal with Iran could be signed as early as this weekend, reversing market concerns that had intensified following earlier threats of military action.
According to Trump, negotiations with Tehran have progressed significantly and have received support from a broad coalition of regional powers. The prospect of easing geopolitical tensions also lifted sentiment across global markets, with Asian equities advancing while US Treasury yields and the dollar moved lower.
Despite the optimism, investors remain cautious. Trump has previously expressed confidence that an agreement with Iran was within reach, only for negotiations to stall without a final deal. As a result, market participants are likely to await concrete developments before fully pricing in a lasting resolution.
(more to come)