The rupee was buoyed on Friday, closing at a one-week high, as crude oil prices softened to a three-month low amid rising hopes of a peace deal between the US and Iran and rally in the domestic equity markets.

Opening stronger at 95.35 per US dollar, the rupee closed at 95.11, up about 0.7 per cent, against previous close of 95.76. It tested an intraday high/ low of 94.95/ 95.53.

Crude oil prices thawed to about $85 per barrel against $90 on reports of US and Iran inching closer to a peace deal. Benchmark indices BSE Sensex and NSE Nifty rose 2.30 per cent and 1.99 per cent, respectively, due to the possibility of a peace deal and softening oil prices.

Amit Pabari, MD, CR Forex Advisors, said: “The rupee delivered a strong performance today, appreciating below the 95-mark during the session. The move was largely driven by a sharp improvement in global risk sentiment, with markets reacting positively to reports suggesting progress in negotiations between the US and Iran.”

Another supportive factor for the rupee has been the evolving global interest-rate environment.

Pabari observed that as major developed economies show limited scope for further rate hikes, capital is likely to flow towards emerging markets in search of better returns, supporting currencies such as the rupee.

Strong resistance

“USD-INR continues to face strong resistance in the 96–96.50 zone. As long as oil prices remain contained and foreign inflows stay supportive, the near-term outlook for the rupee remains constructive. A sustained move below 94.80 could gradually pave the way for a test of the 94.50–94 region in the coming weeks,” per his assessment.

Meanwhile, Motilal Oswal Financial Services Ltd (MOFSL), in a report, said the Reserve Bank of India’s latest measures to boost foreign currency inflows are set to strengthen India’s forex reserves, improve banking system liquidity and support the rupee, with total inflows estimated at $40-50 billion in FY27.

MOFSL estimateD that the USD/INR rate could strengthen towards the 93-94 range in the near term as inflows gather pace.

Published on June 12, 2026