Indian Rupee Rally Stalls Near 1-Month High as Brent Rebounds From $82.40
Updated
Updated · Reuters · Jun 16
Indian Rupee Rally Stalls Near 1-Month High as Brent Rebounds From $82.40
2 articles · Updated · Reuters · Jun 16
Summary
The rupee is set to open largely flat on Tuesday after a 1.1% two-session rally lifted it to 94.4525, as traders reassess whether the Iran-U.S. peace deal can keep easing oil prices.
Brent fell to $82.40 on Monday—its lowest in more than three months—but edged higher again as early market optimism over the Gulf agreement faded.
Traders said the rupee could strengthen toward 93.50-94 if crude stays lower, but would come under pressure again if the oil drop proves temporary.
Asian currencies and equities were mostly weaker and U.S. Treasury yields rose, reflecting a broader shift to caution amid uncertainty over negotiation details and reopening the Strait of Hormuz.
MUFG analysts said the rupee outlook now hinges on how U.S.-Iran talks progress and whether Israel cooperates on Lebanon, underscoring how regional geopolitics still drive emerging-market currencies.