The Indian rupee appreciated by 23 paise to 94.95 against the US dollar in early trading on Wednesday. This movement followed a retreat in Brent crude prices, attributed to hints of a potential deal with Iran from US President Donald Trump.
Forex traders noted that oil prices declined to USD 108 per barrel as indications of easing geopolitical tensions in the Middle East countered ongoing supply concerns. In the interbank foreign exchange market, the rupee opened at 95 but gained momentum, reaching an early high of 94.95, up from its previous low.
By mid-session, the rupee was trading at 95.10 against the dollar. On Tuesday, it closed at 95.18, having previously hit an all-time intraday low of 95.44 due to anticipated Reserve Bank of India (RBI) intervention. This decline was driven by investor retreat from riskier assets amid escalating tensions in the Gulf region and attacks on UAE infrastructure, which heightened supply chain fears.
Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, stated that the rupee’s recovery followed positive signals from the Gift Nifty, indicating an opening gain of 200 points. The dollar index fell to 98.30, contributing to a rise in Asian currencies against the dollar.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading at 98.28, down 0.16 percent. Brent crude, the global oil benchmark, saw a decline of 1.32 percent, trading at USD 108.42 per barrel in futures markets, coinciding with President Trump’s suspension of “Project Freedom.”
President Trump announced the halt of “Project Freedom,” aimed at escorting ships through the Strait of Hormuz, citing progress in negotiations with Iran towards an agreement to end the conflict. In a post on Truth Social, he remarked, “Great progress has been made toward a complete and final agreement with representatives of Iran.”
Initiated on Monday, Project Freedom had begun to escort vessels stranded due to the closure of the Strait of Hormuz. The operation triggered tensions in this crucial maritime route, which accounts for one-fifth of global oil supplies, with the UAE alleging attacks on its ships by Iran. The US also claimed to have destroyed several small Iranian boats in the vicinity.
On the domestic equity front, the Sensex surged 657.22 points to reach 77,675.01 in early trade, while the Nifty advanced by 218 points to 24,250.85. Foreign Institutional Investors sold equities worth Rs 3,621.58 crore on Tuesday, according to exchange data.
Published on May 6, 2026.
