Rupee rises by 40 paise as oil prices slide over two-week ceasefire decision

New Delhi, April 8 The Indian rupee on Wednesday showed positivity for a fourth consecutive session against the dollar, tracking gains in global equities after the United States and Iran agreed to a two-week ceasefire, offering markets respite from turbulence driven by the West Asia conflict.

The domestic currency rose 0.4 per cent to 92.61 against the dollar from its previous close of 93.

This comes after US President Donald Trump announced a temporary ceasefire with Iran, easing geopolitical tensions. The proposal calls for a two-week pause in hostilities and the immediate reopening of the Strait of Hormuz.

Trump confirmed the decision in a post on his social media platform Truth Social, stating that he had instructed US forces to stand down, just hours after issuing strong warnings that included references to the “death of a civilisation.”

Meanwhile, the Reserve Bank of India kept the repo rate unchanged at 5.25 per cent.

Oil prices also traded sharply lower, falling up to 20 per cent. Brent crude futures declined nearly 16 per cent, or $17.39, to an intraday low of $91.88, while US WTI crude plunged nearly 20 per cent, or $21.90, to $91.05.

The ceasefire announcement, made just hours before a threat to escalate bombing of Iran, has revived risk sentiment after weeks of turmoil that pushed several market gauges into correction territory since the Middle East conflict began six weeks ago.

Analysts said the sustainability of the cross-asset relief rally will depend on confirmation that the ceasefire holds and that energy flows through the Strait of Hormuz normalise. "Ceasefire has been tentatively accepted by Iran, though the possibility of violations remains, with Israel continuing strikes that could trigger retaliation," according to experts.

They added that the rupee’s current levels appear favourable for importers, while foreign portfolio investors continue to remain sellers in equities.

Additionally, gold and silver prices opened on a bullish note on the Multi Commodity Exchange (MCX), tracking positive trends in global bullion markets.

Gold futures (June 2026) were trading at Rs 1,53,944 per 10 grams, an increase of Rs 3,655 or 2 per cent. Similarly, silver futures (May) were trading at Rs 2,44,770 per kg, up Rs 13,422 or 6 per cent.

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