Rupee opens 65 paise stronger at 86.11/USD after crude eases on Israel-Iran ceasefire, dollar weakens

Indian rupee

The Indian rupee opened 65 paise stronger at 86.1050 against the US dollar, buoyed by sharp cooloff in crude oil prices on June 24 which fell over 5 percent in Asian trade after US President Trump said Iran and Israel have agreed to a ceasefire, signalling an end to the recent conflict.

The currency opened at 86.1050 against the US dollar as compared to 86.7525 against the greenback at previous close.

A short while ago, Brent crude oil prices were trading at $69.70 per barrel, down $1.72 per barrel or 2.41 percent after falling over 7 percent on June 23.

The dollar index ease to 98.134 in the early trade as compared to 98.416 at previous close. The US dollar is down over 7% so far this year on concerns over the US growth outlook and Trump's levies on trading partners.

Renewed expectations of some US Federal Reserve officials supporting a rate cut from July helped the bond market, as five-year yield fell 10 bps to 3.86%. Fed Governor Michelle Bowman had said on July 23 that she could support a rate cut in July if inflation stays subdued.

The S&P 500 futures were higher by 0.5% in early trade while MSCI Asia Pacific share gauge was clocking its biggest gain in seven weeks.

Within minutes of US President Trump's announcement of truce between Israel and Iran, Iranian foreign minister continued with rhetoric and demanded Tel Aviv stop its military action for any lasting ceasefire. He, said on the X platform that "provided that the Israeli regime stops its illegal aggression against the Iranian people no later than 4 am Tehran time, we have no intention to continue our response afterwards."