 "Rupee sees best opening in over a month on Israel-Iran ceasefire")
Indian Rupee opened higher on Tuesday as crude oil prices fell after the US President Donald Trump announced a tentative ceasefire between Iran and Israel.
The domestic currency rose 64 paise to open at 86.11 against the dollar, after closing at 86.75 on Monday, according to Bloomberg. The unit posted the steepest opening gains since May 13, but has fallen 0.61 per cent so far this month.
Hours after Iran launched missiles at the US air base in Qatar -- which were all intercepted -- Trump said Iran and Israel agreed to a “complete and total ceasefire.” Iran's retaliation at American military bases comes a day after the United States carried out airstrikes on three of Iran’s nuclear sites.
However, in response to Trump's ceasefire claims, Iranian Foreign Minister Abbas Araghchi said that while there is no ceasefire agreement, Iran had no intention to keep responding to Israeli attacks after 4:00 AM Tehran time. The crude oil prices continued to fall after Monday's 7 per cent decline. Track LIVE Stock Market Updates Here
Brent crude price was down 2.48 per cent at $69.71 per barrel, while WTI crude prices were lower by 2.58 per cent at 66.74, as of 9:05 AM IST. Meanwhile, the US dollar index, which measures the greenback against a basket of six major currencies, was down 0.28 per cent at 98.13.
The currency may open around 86.15 following a risk-on rally triggered by a ceasefire announcement from US President Trump, though confirmation from Israel and Iran is awaited, Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, said.
Markets now await US Federal Reserve Chair Jerome Powell’s testimony, where indications of rate cuts may emerge, Bhansali said, adding that the focus is also shifting back to trade tariff concerns. "Given the geopolitical uncertainty, the rupee is expected to trade in a wide range."
HDB Financial Services is set to launch India's biggest-ever initial public offering (IPO) in the non-bank finance company space on Wednesday, June 25, 2025. The IPO of HBD Financial is likely to attract inflows and could push the dollar-rupee below 86.00 levels, Bhansali said.
US equities gained on Monday, and the futures contracts pointed to further upside. Meanwhile, Asian equities and currencies strengthened on Tuesday.