Rupee surges 58 paise amid sharp fall in crude oil prices
New Delhi, June 15
The Indian rupee strengthened by 58 paise against the US dollar on Monday as global crude oil prices tumbled after US President Donald Trump announced that Washington and Tehran had finalised a peace deal and agreed to reopen the Strait of Hormuz.
The domestic currency opened at 94.70 against the greenback in the interbank foreign exchange market and further appreciated to 94.60, a gain of 58 paise from its previous close.
In the last session, the rupee had settled 67 paise higher at 95.18 against the dollar.
The US and Iran have reached an agreement to end war and reopen the Strait of Hormuz -- the strategic waterway through which nearly one-fifth of the world's crude oil supplies are transported.
Reports claim that the agreement is expected to be formally signed in Switzerland later this week.
On Truth Social, the American President said, "The Deal with the Islamic Republic of Iran is now complete. Congratulations to all."
He added that the agreement would facilitate the reopening of the Strait of Hormuz and the removal of the US naval blockade.
According to the experts, the Indian rupee witnesses a positive bias, supported by a sharp decline in crude oil prices following reports of a US-Iran peace agreement and the reopening of the Strait of Hormuz.
"Lower oil prices are positive for India, a major crude importer, as they help reduce the country's import bill and ease pressure on the current account deficit," they added.
Additionally, softer US dollar sentiment, declining Treasury yields, and improving risk appetite across Asian markets have boosted regional currencies, including the rupee. While India's inflation rose to 3.9 per cent in May, it remained below the RBI's 4 per cent target, providing macroeconomic stability, the experts said.
They further noted that the RBI's recent measures to attract dollar inflows, including the revival of an NRI deposit window, may further support the domestic currency.
However, market participants will closely monitor the upcoming Federal Reserve policy decision and comments from Chair Kevin Warsh for signals on the future path of U.S. interest rates, which could influence near-term rupee direction, according to experts.
Brent crude -- the global oil benchmark -- fell almost 5 per cent to $83 per barrel. Similarly, US WTI decreased by over 5 per cent to $80.
In addition, domestic equities witnessed strong buying interest. Benchmarks Sensex and Nifty gained over 1 per cent in early trade.
— IANS
Reader Comments
Rupee 94.60 is a blessing for importers like us in the textile industry. But let's not get too excited - the real test will be when Fed decides on interest rates. Dollar inflows are unpredictable. Still, 58 paise gain in one day shows how geopolitics impacts our economy directly. Lower oil prices are definitely a relief for everyone from auto owners to housewives managing kitchen budgets.
Ab rupee ka dance dekhne ko mil raha hai! 😄 But seriously, this US-Iran deal is excellent for India. Strait of Hormuz reopening will stabilize oil supply chains. However, I hope RBI doesn't become complacent - we need sustained policies to attract dollars, not just temporary relief from geopolitical winds. Foot theek hain, but long-term planning chahiye!
Great news for India's import bill! But why is nobody talking about the fact that this deal was made by Trump? Remember he walked away from the nuclear deal earlier and imposed sanctions that hurt everyone. Let's see if this actually holds. My real concern is if this peace is temporary - a new conflict could send oil prices skyrocketing again. For now, lower petrol prices will make many Indians happy.
Rupee strengthening is good, but let's not ignore the flip side. Exporters, IT companies, and textile businesses will feel the pinch because their dollar earnings will be worth less in rupees. Also, this sudden surge might be short-lived. The NRI deposit window revival is smart, but we need structural reforms. Still, lower oil prices mean lower production costs for many industries - net positive for India overall.
A Ananya R One small step for We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.