The rupee opens higher against the US dollar on Wednesday. It appreciated 0.4% to 92.67 at the open against the greenback. The dollar index, which gauges the strength of US unit against six major currencies, was trading lower by 0.5% at 98.98 as of 9:15 a.m.
This is after US President Donald Trump announced temporary ceasefire with Iran, easing geopolitical tensions. The ceasefire 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 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.”
Market participants are closely watching the outcome of the first Monetary Policy Committee meeting of FY27, scheduled for today, with expectations that the Reserve Bank of India will keep interest rates unchanged. Alongside the rate decision, announcements related to liquidity measures, as well as revised inflation and growth projections, will be closely scrutinised, especially against the backdrop of ongoing geopolitical tensions stemming from the Iran conflict.
Banks have until April 10 to adhere to the Reserve Bank of India's directive on net open positions in the rupee (NOP‑INR). After experiencing sharp volatility last week, the rupee has stabilised in recent sessions, moving within a relatively narrow 30‑paise range.
Get the latest updates on the US-Iran ceasefire here.
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