The domestic currency drew support from a sharp fall in oil prices after Brent crude for June delivery slipped to around $94.40 a barrel in Asian trade, extending its previous session’s decline of about 4.6%.
Oil prices had earlier surged toward $104 on Monday (April 13) after geopolitical tensions escalated, but later retreated on expectations of a potential diplomatic thaw.Market sentiment improved after renewed signals that talks between the United States and Iran could resume, easing fears of prolonged supply disruptions. US President Donald Trump said discussions aimed at halting the conflict could restart in Pakistan within the next two days, following a breakdown in earlier negotiations that had led to heightened tensions and a blockade on Iranian ports.
The prospect of revived diplomacy lifted hopes of stabilising crude supply flows, which in turn supported risk appetite across global markets. Asian equities tracked gains on Wall Street, while US stocks extended their advance after reclaiming pre-conflict levels.In currency markets, traders noted that the rupee has largely stabilised around the 93 level.
“You can count on a range of 92.80–93.50 for the time being,” a currency trader at a private sector bank said, pointing to short-term consolidation.
According to MUFG Bank, the recent pullback in oil and easing geopolitical stress have contributed to a revival in risk appetite, with the dollar also weakening back below pre-conflict levels.
Overall, the rupee’s recovery reflected softer crude prices, improved global sentiment, and expectations that diplomatic engagement could reduce supply-side risks in energy markets.
-With Reuters inputs
