The Rupee opened 35 paise stronger on Monday as crude oil prices declined on prospects of the US and Iran reaching a peace deal brightened and RBI Governor Sanjay Malhotra reportedly stating that the Rupee may be undervalued.

The Indian currency opened at 95.34/35 per US Dollar against the previous close of 95.69/70. The Rupee is currently trading at 95.29. In intraday trading so far, it hit a high of 95.20 and a low of 95.44, per CCIL data.

The US and Iran are inching close to a peace agreement, brightening the possibility of the arterial Strait of Hormuz being opened up for crude oil trade. Crude oil prices dipped below $100 a barrel to about $96 a barrel, down 6 per cent.

RBI Governor Sanjay Malhotra, in an interview with Mint, said the Indian Rupee is not overvalued and may, in fact, be undervalued after the recent depreciation. He also emphasised that the RBI does not target any specific exchange rate level and would intervene only to curb abnormal and high volatility or undue speculation.

Mecklai Financial Services said: “Overall, the broad market narrative has temporarily shifted from inflation and aggressive monetary tightening toward geopolitical de-escalation and energy market normalization. However, market remain cautious as any delay or breakdown in the US-Iran negotiations could quickly reverse the current improvement in global risk appetite.”

“The USD/INR pair is currently consolidating near 95.70, while RSI (Relative Strength Index) around 58 indicates positive momentum without overbought conditions. Immediate support is placed at 95.40-95.00, whereas resistance is seen around 96.10-96.70.”

Published on May 25, 2026