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Indian rupee strengthens as oil cools and US-Iran ceasefire hopes grow
USD/INR eased from a two-month high near 96.76 to around 96.34, after crude prices paused following renewed US-Iran ceasefire talks expectations.
The Indian rupee opened higher against the US dollar on Tuesday, with USD/INR trading near 96.34 after correcting from its two-month high of 96.76 hit on Monday, FXStreet reported. The currency’s rise tracked a pause in the oil price rally as markets weighed fresh hopes for de-escalation between the United States and Iran. The report said softer crude conditions tend to support oil-importing economies like India, while renewed conflict would likely add volatility.
FXStreet also pointed to the MCX Crude Oil contract expiring on August 19, marginally down to around Rs. 7,945. It noted that oil had corrected sharply on Monday after posting a fresh five-week high at Rs. 8,158.
On the diplomatic front, FXStreet cited reporting that a senior Iranian official confirmed receiving a proposal for a 10-day cessation of strikes, while another Axios report indicated US President Donald Trump would either accept a 10-day ceasefire and resume negotiations or pursue a joint full-scale military campaign with Israel against Iran. The broader risk backdrop, combined with Foreign Institutional Investors continuing to sell Indian equities, was described as a factor in market sentiment.
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