INR jumps to highest level since May 8 at 94.68/$
What's the story
The Indian rupee opened 43p stronger at ₹94.68 against the US dollars today. This is its strongest level since May 8, compared with the previous session's close of ₹95.11 per dollar. The rise comes after a ceasefire agreement between the US and Iran, which has eased fears of a prolonged conflict in West Asia and led to a drop in crude oil prices.
Market reaction
Brent crude oil prices fell by over 4%
The ceasefire agreement between the US and Iran has had a major impact on global markets. Brent crude oil prices fell by over 4% to $83 per barrel, their lowest since April. This decline is particularly important for India, one of the world's largest crude importers, as it could help reduce the country's import bill and support the rupee further.
Currency support
Measures to attract dollar inflows
The rupee had already started recovering after the Reserve Bank of India (RBI) announced measures at its last monetary policy meeting to attract dollar inflows. These included bringing back a 2013-style window to mobilize funds from non-resident Indians. The latest fall in oil prices is expected to provide additional support to the domestic currency, further improving its outlook against the US dollar.