Overview
- Market risk eased after reports that President Trump delayed strikes on Iran, a development that helped lift the Indian rupee through stronger investor appetite and a softer US dollar.
- A sharp drop in Brent and WTI futures cut near-term oil import cost concerns for India, which investors said lowered inflation pressure and supported the rupee’s move toward one-month highs.
- Foreign institutional inflows and gains in Indian equities provided further currency support while market participants and dealers flagged near-daily dollar sales by the Reserve Bank of India as smoothing volatility.
- Pakistan’s rupee posted only marginal gains, closing around Rs277.76–277.80, as the State Bank of Pakistan held its policy rate at 11.5% and reported SBP-held foreign-exchange reserves fell to USD17.03 billion largely because of external debt repayments.
- Traders are watching the Reserve Bank of India’s upcoming Monetary Policy Committee decision and key US data for the next directional cues, with oil-price moves and foreign flows likely to shape near-term currency paths.