The Indian rupee rose for a
third consecutive session on Tuesday as underlying sentiment
remained supportive, while traders awaited details of the
U.S.–Iran peace agreement and guidance from the U.S. Federal
Reserve.
The rupee closed up 0.2% at 94.56 against the
dollar. The local unit opened at 94.6125, and moved around 10
paisa on either side of Friday’s close during the session.
The rupee had hit an intraday high of 94.4950 before
slipping, suggesting importer hedging interest around those
levels, traders said.
“Supported by foreign inflows from the central bank measures
and softer oil prices after end of war, the rupee is likely to
appreciate toward 94 in the near term before consolidating near
that level,” said Mandar Pitale, head of treasury at SBM Bank
(India).
The rupee’s underlying bias has improved as the U.S.–Iran
peace deal eased immediate energy supply concerns, though
investors await the agreement’s details.
On Monday, U.S. President Donald Trump said Washington and
Tehran had signed a preliminary agreement to halt the war,
though a permanent truce is yet to be negotiated.
The arrangement would allow the reopening of the Strait of
Hormuz, a critical chokepoint through which roughly one-fifth of
global oil and liquefied natural gas supplies pass.
Oil prices softened in response to the easing geopolitical
risk premium, with the benchmark Brent crude slipping below
$81.50 per barrel.
For India, the decline in oil prices is materially
supportive as it is the world’s third-largest oil importer and
consumer.
Lower oil prices would help reduce the country’s import
bill, ease pressure on the current account deficit and lower
dollar demand from oil-marketing companies.
Attention is also on the Fed’s policy decision, due after
Indian markets close on Wednesday.
The Fed is widely expected to keep interest rates unchanged,
but its updated guidance and commentary will be closely watched
for clues on the U.S. central bank’s future rate moves.
Published on June 16, 2026
