Indian Rupee Records Sharpest Monthly Gain Amid Global Market Relief Following US-Iran Diplomatic Developments

Indian Rupee Posts Best Single-Day Gain in a Month Amid Hopes of US-Iran Agreement

The Indian rupee recorded its best single-day gain in a month on Wednesday, joining a global relief rally as hopes of a cessation of hostilities between the U.S. and Iran sparked sharp gains across Asian currencies. The rupee posted a gain of 0.7% before settling at 94.61 per dollar, its highest level since a record low of 95.4325 on Tuesday.

The developments were triggered by reports that the White House is close to an agreement with Iran on a one-page memorandum of understanding to end the war and set a framework for more detailed nuclear negotiations. This news drove a sharp decline in Brent crude futures, which were last down 7% at $102 per barrel. The oil price had retreated earlier in the day after U.S. President Trump signaled a possible deal.

Asian Currencies Rise as Regional Markets Gain

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Oil-sensitive Asian currencies, including the Indonesian rupiah and Philippine peso, rose in response to the news. The Korean won led regional gains, surging over 2% in its sharp increase. The dollar index, on the other hand, fell 0.5% to 97.88.

Global equities extended gains following the Axios report on the potential agreement between the U.S. and Iran. India's benchmark equity index, the Nifty 50, ended higher by 1.2%, while the yield on the benchmark 10-year bond slumped nearly 8 bps to 6.93%.