Indian Rupee Jumps 65 Paisa to Rs 86.11/USD After Oil Slumps on Israel–Iran Ceasefire

The Indian rupee surged 65 paise to open at ₹86.1050 per US dollar on June 24, reversing recent losses. This jump follows a sharp fall in Brent crude, which dropped over 5 percent, trading around $69.70 per barrel, after the announcement of a tentative ceasefire between Israel and Iran by US President Trump.

Meanwhile, the US dollar index eased to 98.13 from 98.42, reflecting reduced safe‑haven demand. Contributing factors include renewed market optimism built on de-escalation in the Middle East and growing expectations of a US Federal Reserve rate cut in July — comments from Fed Governor Michelle Bowman reinforced this outlook.

This rally marks one of the strongest openings in over a month for the rupee, as domestic investors react to global cues. While the greenback has weakened about 7% YTD, analysts caution that sustained rupee gains may face challenges, especially if geopolitical tensions flare again .

Market Indicators at Open:

Rupee: Rs 86.11/USD (up ₹0.65)

Brent Crude: ~$69.70/barrel (down ~2.4% intra‑day)

Dollar Index: 98.13

US 5‑year yield: 3.86% (down 10 bps)

Outlook:

Trade sentiment favors a stronger rupee, but renewed volatility in oil or global risk-off trends could offset these gains. If a US rate cut materializes, emerging-market currencies like the rupee may see further support