Kamal Ghorui
The rupee appreciated 52 paise to close at 92.54 against the US dollar on Wednesday after US President Donald Trump announced a two-week suspension of military strikes against Iran and the Reserve Bank kept policy rates unchanged, PTI reported.Forex traders said investor sentiment improved following Governor Sanjay Malhotra’s assurance that recent forex measures do not signal a structural shift, along with confidence in the banking system despite recent developments in some private banks.At the interbank foreign exchange market, the rupee opened at 92.92 against the US dollar, strengthened to touch 92.45 during the session and finally settled at 92.54, up 52 paise from its previous close of 93.06.The Reserve Bank of India’s Monetary Policy Committee unanimously decided to keep the benchmark repo rate unchanged at 5.25%, retaining a neutral stance amid uncertainty arising from the West Asia conflict’s impact on inflation, growth and trade flows.Meanwhile, the dollar index, which measures the greenback against a basket of six currencies, fell 0.96% to 98.90.The RBI, in its bi-annual Monetary Policy Report, projected crude oil prices at an average of $85 per barrel and the rupee at 94 against the US dollar for FY27, revising its earlier assumptions.Brent crude, the global oil benchmark, dropped 13.73% to $94.27 per barrel following the ceasefire announcement.According to Dilip Parmar, Senior Research Analyst at HDFC Securities, the rupee has staged a strong recovery amid easing geopolitical tensions.“With geopolitical anxieties dissipating, both the rupee and its regional currencies appear poised for additional strength over the coming days,” he said, adding, “The trading range for the USD-INR has shifted to 92 and resistance at 93.10.”He said the rebound was supported by multiple tailwinds, including a sharp correction in crude oil prices, supportive RBI commentary and a rally in global equities.Trump announced the ceasefire just ahead of a deadline for reopening the Strait of Hormuz, with Iran agreeing to allow safe navigation through the key oil transit route.On the domestic equity front, the Sensex jumped 2,946.32 points to close at 77,562.90, while the Nifty surged 873.70 points to 23,997.35.Foreign institutional investors sold equities worth Rs 2,811.97 crore on Wednesday, according to exchange data.
