This article was written by

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

The Indian rupee gained 65 paise against the dollar on Friday, bolstered by a sharp decline in global crude oil prices after US President Donald Trump indicated that an agreement with Iran to end the war had nearly been clinched. The currency ended the session at 95.11 against the greenback against its previous close of 95.76. The rupee traded in the range of 94.94-95.53.

The weakest level was hit in the first half of the day, which prompted mild intervention by the Reserve Bank of India (RBI), traders said.

“There was also some intervention seen around 95.50 levels today (Friday). Then positive news came in about a peace deal, which supported the rupee. If Strait of Hormuz reopens, it will be coupled with the inflows from FCNR(B), which will take the rupee to 92-93 levels,” said Ritesh Bhansali, deputy CEO, Mecklai Financial Services.The rupee has weakened 0.29% since the beginning of this financial year, after sliding nearly 11% in 2025-26. Importers are largely staying on the sidelines for now, awaiting further appreciation in the rupee before stepping up hedging activity, traders said.

“Importers can wait for better levels, while exporters can hedge at upticks. 94.80 is a key level again, which will see some resistance as there will be stop-losses around it,” Bhansali said.
Brent crude, the global oil benchmark, plunged to $85.80 per barrel on Friday, hitting the lowest level in three months, after the US President said a peace agreement could be signed as early as this weekend.
The rupee had depreciated 2.2% since the start of the US-Israel war against Iran on February 28 before the Reserve Bank of India announced measures to attract capital inflow.
The sharp decline in crude oil prices, along with the measures from the Reserve Bank of India and the government announced last week, helped strengthen the rupee, traders said.

The RBI announced a series of measures aimed at attracting dollar inflows, which have helped stabilise the currency after it hit an all-time low of 96.96 per dollar in late May. “The gains seen today were all a play of Brent prices falling. If there are no further escalations, and if indeed the signing of the peace deal is close, then we can see further appreciation towards 92 per dollar,” said Sajal Gupta, head of forex and commodities at Nuvama.