25.06.202603:52:27UTC+00Rupee Rises on Falling Crude Prices

The Indian rupee strengthened to around 94.3 per dollar, reversing earlier losses and setting up for further gains as crude oil prices fell below levels seen before the Iran conflict. In the previous session, the rupee briefly approached the 95-per-dollar mark before rebounding, supported by likely intervention from the Reserve Bank of India and remarks from RBI Governor Sanjay Malhotra that pressured forward premium levels.

Support for the rupee was further bolstered by a sharp correction in global energy markets following the announcement of a 60-day negotiating window between the United States and Iran. The pullback in energy prices has eased concerns over imported inflation for major oil-importing economies such as India.

European natural gas prices have dropped about 45% from their wartime peak, while crude oil prices are down roughly 40%. Brent crude has fallen below $80 per barrel, slipping under levels prevailing before the Iran conflict escalated, and U.S. crude is nearing the $70 mark.