The Indian Rupee opened 35 paise stronger on Monday, reaching 95.34/35 per US Dollar, compared to the previous close of 95.69/70, as crude oil prices fell amidst optimistic prospects of a peace agreement between the US and Iran. Currently, the Rupee is trading at 95.29, having seen a high of 95.20 and a low of 95.44 during intraday trading, according to CCIL data.
The potential for a US-Iran peace deal has enhanced expectations that the critical Strait of Hormuz could be reopened for crude oil trade. As a result, crude oil prices dropped below $100 per barrel, now around $96, reflecting a 6 percent fall.
In comments made to Mint, RBI Governor Sanjay Malhotra stated that the Indian Rupee may be undervalued following its recent depreciation, clarifying that the Reserve Bank of India does not aim for a specific exchange rate but may intervene to mitigate excessive volatility or speculative activity.
Mecklai Financial Services noted that the market sentiment has shifted from concerns over inflation and rigorous monetary tightening to a focus on geopolitical stabilization and the normalization of energy markets. However, they warned that any delays or failures in US-Iran negotiations could quickly reverse the recent improvement in global risk sentiment.
Currently, the USD/INR pair is consolidating around 95.70, with a Relative Strength Index (RSI) of approximately 58, indicating positive momentum without reaching overbought levels. Immediate support is identified at 95.40-95.00, while resistance levels are expected around 96.10-96.70.
Published on May 25, 2026.
