The Indian rupee strengthened by 24 paise to open at 95.47 against the US dollar on Tuesday, 9 June, supported by easing crude oil prices after a temporary pause in hostilities between Iran and Israel, which also weighed on the greenback.
The domestic currency has recovered to levels seen before the Reserve Bank of India’s monetary policy announcement last week, when the central bank unveiled a series of measures to attract dollar inflows and improve foreign currency liquidity.
Market participants were caught off guard by the rupee’s sharp decline on Monday, despite sentiment having turned moderately positive following the RBI’s initiatives. Analysts believe the central bank’s measures could attract billions of dollars into the financial system, helping reduce pressure on the local currency.
Brent crude had surged to nearly $98 per barrel on Monday after renewed Israeli strikes on Iran and attacks in Lebanon dampened hopes of an immediate ceasefire. However, prices later cooled to around $94 per barrel after both Iran and Israel agreed to halt hostilities following an appeal from US President Donald Trump, easing concerns over potential disruptions to global energy supplies.
