The Indian rupee opened 24 paise stronger at 95.04 against the US dollar on Wednesday, 6 May, supported by a pullback in crude oil prices after US President Donald Trump signalled a possible peace deal with Iran.
As per a Reuters report, traders said expectations of measures to boost dollar inflows also helped ease pressure on the currency.
Brent crude for July delivery extended losses in the Asian session, slipping to around $108 per barrel after Trump said he would briefly pause plans to escort ships through the Strait of Hormuz, citing progress toward a broader agreement with Iran. However, he did not provide further details, and there was no immediate response from Tehran.
Oil markets have remained volatile amid mixed signals on US-Iran tensions, with uncertainty persisting despite signs that the ceasefire is holding. Analysts at ING Bank, as reported by Reuters, noted that the pause in operations could add further downside pressure to crude prices.
The rupee has been closely tracking oil movements, with spikes in crude exerting more pressure than the relief from declines. The currency had touched a record low of 95.4325 on Tuesday, 5 May.
(more to come)