Rupee Rises 53 Paise To Close at 95.05 Against US Dollar

The rupee surged 53 paise to close at 95.05 against the US dollar in early trade, buoyed by renewed optimism over the extended ceasefire agreement between the United States and Iran.

Forex traders say that the rally to easing crude oil prices and a softer dollar, following news that Washington and Tehran had agreed to prolong the truce for another 60 days while resuming negotiations on Iran's nuclear program.

At the interbank foreign exchange market, the rupee opened at 95.77 per dollar, touched a high of 94.97, and slipped to a low of 95.78 before settling at 95.05 provisionally. This marks a sharp gain from Wednesday's close of 95.58, when the currency had already advanced 12 paise. Domestic markets remained shut on Thursday for Eid-ul-Azha.

Analysts expect the rupee to maintain a mildly positive bias in the near term, supported by softer crude and a weaker greenback. "Optimism over the peace deal is lifting sentiment, though any flare-up in US-Iran tensions could cap gains. Spot USD-INR is likely to trade between 94.70 and 95.60," PTI quoted Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, as saying.

Meanwhile, the dollar index edged higher by 0.11 percent to 99.13, while Brent crude futures slipped 1.81 percent to USD 92.01 per barrel.

Attention now turns to the Reserve Bank of India's Monetary Policy Committee meeting scheduled for June 3-5. Economists are divided on whether the RBI will raise rates or hold steady, with the broader debate centering on balancing inflation control with currency stability.

On the equities front, markets witnessed heavy selling pressure. The Sensex tumbled 1,092.06 points to close at 74,775.74, while the Nifty dropped 359.40 points to 23,547.75. Foreign institutional investors were net sellers, offloading shares worth Rs 1,042.70 crore on Wednesday, according to exchange data.