Mumbai, June 15: The rupee strengthened 60 paise to settle at 94.58 against the US dollar on Monday as global crude oil prices dropped sharply after US President Donald Trump announced that the US and Iran finalised a deal to end the war.
A surge in the domestic equity markets and a weaker US dollar further drove the local unit, forex traders said.
At the interbank foreign exchange, the rupee opened at 94.70 against the US dollar and traded in the range of 94.45-94.77. Eventually, it settled at 94.58, up 60 paise from its previous close.
The rupee jumped 67 paise to close at 95.18 against the greenback on Friday.
The US and Iran finalised a deal to end their 107-day war and open the Strait of Hormuz, the narrow waterway used to ferry one-fifth of the global oil supplies. The deal is expected to be signed on Friday in Switzerland.
President Trump made the announcement on Truth Social on Sunday evening, easing pressure on the global energy markets, as officials said the peace agreement would be signed on June 19 in Switzerland.
“The deal with the Islamic Republic of Iran is now complete. Congratulations to all,” Trump said, adding that it would reopen the Strait of Hormuz and end the US naval blockade on Iranian ports.
“The Indian rupee rose for the second consecutive day on a rise in risk appetite in global markets amid the US-Iran deal. This led to a sharp rally in global risk assets and a fall in global crude oil prices. A decline in the US dollar and US treasury yields, too, favoured the rupee,” Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, said. (PTI)
