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.