The Indian rupee strengthened by 31 paise to close at 94.29 against the US dollar on June 17, 2026, driven by a decline in global crude oil prices and reduced geopolitical tensions between the United States and Iran, according to forex traders.
Brent crude oil futures fell by approximately 1.5% during the session, trading near $72 per barrel, as reports indicated progress in US-Iran nuclear talks. The easing of tensions lowered the risk premium on oil, benefiting import-dependent economies like India.
Additionally, the dollar index weakened slightly, providing further support to emerging market currencies. The rupee opened at 94.50 and touched an intraday high of 94.25 before settling at 94.29, marking its strongest level in two weeks.
Analysts noted that foreign portfolio inflows into Indian equities also contributed to the rupee's gains, with net purchases of around $200 million on the day. However, traders remain cautious ahead of the US Federal Reserve's interest rate decision later this week.
