RUPEE REBOUNDS, OPENS 24 PAISE HIGHER AT 95.04 AGAINST DOLLAR AS BRENT COOLS

The rupee opened 24 paise higher on May 6 as Brent crude prices eased overnight after US President Donald Trump indicated a possible peace deal with Iran was within reach, easing supply chain concerns.

The currency opened at 95.04 against the dollar after ending the previous session at 95.28.

Brent crude cooled more than a percent overnight to trade at $108 a barrel ⁠after Trump announced a brief pause to "Project Freedom", an operation to ​help escort ships through the Strait of Hormuz, citing "great progress" towards an agreement  with Iran. The blockade around Iranian ports will continue, he added. There was no immediate reaction from Iran.

India meets around 85 percent of its energy needs through imports. Higher Brent crude prices add to the country’s import bill, widening the current account deficit and weighing on the currency.

The rupee has come under pressure, with oil refiners taking advantage of the present levels to hedge their positions to pre-empt a further fall. The Reserve Bank of India (RBI), on the other hand, has likely been in the market to prevent any sharp depreciation, traders say.

“From a near-term perspective, the recent move in the USD/INR pair appears somewhat stretched. The Rs 95.30– Rs 95.50 zone is likely to act as a strong resistance area, where the pair may not sustain further upside without a fresh trigger,” Amita Pabari, the managing director at CR Forex Advisors, said.

Oil markets have swung with headlines about the US-Iran war. Just two days ago, the ceasefire looked in jeopardy after ​Trump announced the plan to escort stranded tankers through the vital energy route. Iran fired on ships and a port in UAE, as the two sides wrestled for the control of the strait.

Persistent pressure ​on the rupee is fuelling expectations of measures to ​boost dollar ⁠inflows. Reuters reported the Reserve Bank of India is studying ways to mobilise such flows, while Bloomberg News said the central bank is weighing a plan ⁠for state-owned ​lenders to sell foreign-currency bonds.

With agency inputs

2026-05-06T03:55:21Z