image sourced from original article at The rupee strengthened by 40 paise to 95.20 against the United States dollar in early Monday trade, extending gains from the previous session. The rebound was supported by improving global sentiment amid hopes of a potential peace agreement between the United States and Iran, which has lifted investor confidence.
The domestic currency had already risen 75 paise on Friday, recovering after a nearly 6 percent decline since the Middle East conflict escalated in late February. Analysts said expectations of a trade deal beneficial to both India and the United States, along with lower dollar demand due to a holiday in the United States, supported the rupee. The Reserve Bank of India is expected to closely monitor currency movements.
Broader markets also reflected the optimism. The dollar index eased, Brent crude prices dropped more than 5 percent, and Indian equity benchmarks surged over 1 percent in early trade, signaling improved risk appetite among investors despite lingering geopolitical uncertainties.
