NEW DELHI, India — The Indian rupee opened stronger against the U.S. dollar on Tuesday, supported by improving sentiment after the United States signaled a temporary pause in potential military action targeting Iran’s energy infrastructure.
The currency was trading at Rs 93.64 to the dollar, recovering from its record low of Rs 93.98 in the previous session.
Analysts said markets reacted positively to the five-day pause announced by U.S. President Donald Trump, though the response remained cautious, with investors looking for clearer signs of sustained de-escalation.
On Monday, the rupee had weakened sharply, slipping below 93.95 and declining 0.37 percent as escalating tensions in West Asia weighed heavily on the currency.
Rising crude oil prices have also pressured the rupee, as India’s status as a net importer increases outflows and widens the import bill.
Higher oil prices are expected to push inflation upward, potentially weighing on economic growth and adding further pressure on the currency, analysts said.
Jateen Trivedi, vice president and research analyst for commodities and currencies at LKP Securities, said the broader macroeconomic backdrop remains fragile and that the rupee could stay under pressure as long as geopolitical tensions and energy prices remain elevated.
In the near term, the rupee is expected to trade within a range of 93.25 to 94.25, with sentiment likely to remain cautious until there is more clarity on global developments, market watchers said.
Investor sentiment improved after Trump said the United States and Iran had held “very good and productive conversations” over the past two days and that Washington would delay any strikes on Iranian power plants and energy infrastructure for five days.
However, Iran’s parliamentary speaker Mohammad-Bagher Ghalibaf denied that any such talks had taken place, contradicting the U.S. president’s remarks.
Analysts said that while the rupee’s rebound reflects easing geopolitical concerns, the sustainability of the recovery will depend on further developments in global tensions and crude oil price trends. (Source: IANS)
