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Rupee Gains 40 Paise as US-Iran Ceasefire Cools Oil, Soothes Markets

The Indian rupee strengthened for a fourth consecutive session, rising 40 paise against the dollar, buoyed by a risk-on sentiment in global markets. This shift followed an announcement of a two-week ceasefire between the US and Iran, which eased geopolitical tensions and triggered a sharp decline in oil prices. Analysts caution that the sustainability of the market relief depends on the ceasefire holding and the normalization of energy flows through the Strait of Hormuz. Meanwhile, the RBI kept interest rates unchanged, and domestic bullion markets saw gold and silver prices open higher.

Key Points: Rupee Rises on US-Iran Ceasefire, Oil Price Slump

  • Rupee gains 0.4% to 92.61/USD
  • Oil prices plunge up to 20%
  • US-Iran agree to two-week ceasefire
  • RBI holds repo rate steady at 5.25%
  • Gold, silver prices open bullish on MCX
2 min read

Rupee rises by 40 paise as oil prices slide over two-week ceasefire decision

Indian rupee strengthens for 4th day as US-Iran two-week ceasefire eases geopolitical tensions, triggering a sharp drop in global oil prices.

"Ceasefire has been tentatively accepted by Iran, though the possibility of violations remains - Experts"

New Delhi, April 8

The Indian rupee on Wednesday showed positivity for a fourth consecutive session against the dollar, tracking gains in global equities after the United States and Iran agreed to a two-week ceasefire, offering markets respite from turbulence driven by the West Asia conflict.

The domestic currency rose 0.4 per cent to 92.61 against the dollar from its previous close of 93.

This comes after US President Donald Trump announced a temporary ceasefire with Iran, easing geopolitical tensions. The proposal calls for a two-week pause in hostilities and the immediate reopening of the Strait of Hormuz.

Trump confirmed the decision in a post on his social media platform Truth Social, stating that he had instructed US forces to stand down, just hours after issuing strong warnings that included references to the "death of a civilisation."

Meanwhile, the Reserve Bank of India kept the repo rate unchanged at 5.25 per cent.

Oil prices also traded sharply lower, falling up to 20 per cent. Brent crude futures declined nearly 16 per cent, or $17.39, to an intraday low of $91.88, while US WTI crude plunged nearly 20 per cent, or $21.90, to $91.05.

The ceasefire announcement, made just hours before a threat to escalate bombing of Iran, has revived risk sentiment after weeks of turmoil that pushed several market gauges into correction territory since the Middle East conflict began six weeks ago.

Analysts said the sustainability of the cross-asset relief rally will depend on confirmation that the ceasefire holds and that energy flows through the Strait of Hormuz normalise. "Ceasefire has been tentatively accepted by Iran, though the possibility of violations remains, with Israel continuing strikes that could trigger retaliation," according to experts.

They added that the rupee's current levels appear favourable for importers, while foreign portfolio investors continue to remain sellers in equities.

Additionally, gold and silver prices opened on a bullish note on the Multi Commodity Exchange (MCX), tracking positive trends in global bullion markets.

Gold futures (June 2026) were trading at Rs 1,53,944 per 10 grams, an increase of Rs 3,655 or 2 per cent. Similarly, silver futures (May) were trading at Rs 2,44,770 per kg, up Rs 13,422 or 6 per cent.

- IANS

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Reader Comments

P
Priya S
Good to see the RBI keeping rates steady. With oil prices falling, maybe we'll see some relief at the petrol pump soon? Fingers crossed! This geopolitical tension has been making everything so expensive.
V
Vikram M
A two-week ceasefire feels very fragile. Trump's statement went from "death of a civilisation" to a ceasefire in hours. The market rally might be short-lived if tensions flare up again. We should be cautiously optimistic.
S
Sarah B
The jump in gold and silver prices is interesting. It seems investors are still hedging their bets, not fully convinced by the peace talks. Smart move, given the history of the region.
R
Rohit P
This is a welcome relief for my small business. Import costs were killing us. Hope the government uses this window to build stronger forex reserves. Jai Hind!
K
Karthik V
While the news is positive, I have a respectful criticism of the article. It focuses heavily on US/Iran dynamics. It would be better to analyse more on what proactive steps India's diplomacy is taking to secure its energy interests in the Strait of Hormuz, beyond just market reactions.
M
Meera T
The volatility is nerve-wracking for common people. One day petrol prices are through the roof, the next there's hope. Just hope this peace lasts

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