Rupee rallies to ₹92.35, likely to stabilize at 92-93 amid US‑Iran ceasefire

The Indian rupee surged on Wednesday, closing at ₹92.35 against the US dollar , marking a strong recovery after the announcement of a two-week ceasefire between the United States and Iran . The news lifted global investor sentiment and triggered buying in risk assets, including equities, commodities, and emerging-market currencies. Brent crude prices fell sharply below USD 100 per barrel , easing pressure on India as a major oil importer.

The currency opened at ₹92.92 and strengthened steadily throughout the day, reflecting optimism over the geopolitical development. Traders noted that Iran’s agreement to allow safe navigation through the Strait of Hormuz during the ceasefire further eased supply concerns, supporting currency and equity markets.

The RBI’s Monetary Policy Committee kept the repurchase rate at 5.25% with a neutral stance , projecting FY27 inflation around 4.6% and the rupee near 94/USD , while noting recent forex interventions were temporary.

According to the EAC-PM chairman , the rupee is likely to stabilize in the ₹92-₹93 range , reflecting a mix of domestic policy support and easing global uncertainties.

Indian equity markets responded positively, with the Sensex climbing sharply and the Nifty closing near 24,000. Investor confidence was boosted by easing crude prices and relief from geopolitical tensions, while foreign inflows and lower global bond yields added momentum.

Analysts say that while the near-term outlook remains range-bound , the combination of Middle East peace hopes , a favorable crude price environment, and a steady monetary policy has produced one of the most notable reversals in the rupee’s performance in recent weeks, offering relief to import-sensitive sectors and investors alike.