Iran Ceasefire Supports Indian Rupee, Oil Prices Fall

The Indian rupee is poised to open higher on Wednesday, trading around 92.40-92.50 per U.S. dollar, after settling at 93.0075 on Tuesday. The boost comes from plunging oil prices and a rally in Asian currencies following a two-week ceasefire in the Middle East. Brent crude June futures dropped nearly 14% to $94.10 a barrel, while U.S., South Korean, and Japanese equities rose sharply.

The ceasefire, agreed just hours before a U.S. deadline for Iran to reopen the Strait of Hormuz, has eased geopolitical tensions, benefiting risk assets and Asian currencies. Analysts view the de-escalation as positive for markets, with hopes that energy flows and shipping activity will quickly normalize.

For India, a major oil importer, the development comes ahead of the Reserve Bank of India’s policy decision at 10 a.m. IST. The central bank is expected to maintain rates, having recently tightened controls to manage rupee volatility amid rising oil costs. The ceasefire relief is likely to further strengthen the rupee in the near term.

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