Rupee opens 24 paise higher at 95.04 against US dollar

The Indian rupee opened 24 paise stronger at 95.04 against the US dollar on Wednesday, 6 May, supported by a pullback in crude oil prices after US President Donald Trump signalled a possible peace deal with Iran.

As per a Reuters report, traders said expectations of measures to boost dollar inflows also helped ease pressure on the currency.

Brent crude for July delivery extended losses in the Asian session, slipping to around $108 per barrel after Trump said he would briefly pause plans to escort ships through the Strait of Hormuz, citing progress toward a broader agreement with Iran. However, he did not provide further details, and there was no immediate response from Tehran.

Oil markets have remained volatile amid mixed signals on US-Iran tensions, with uncertainty persisting despite signs that the ceasefire is holding. Analysts at ING Bank, as reported by Reuters, noted that the pause in operations could add further downside pressure to crude prices.

The rupee has been closely tracking oil movements, with spikes in crude exerting more pressure than the relief from declines. The currency had touched a record low of 95.4325 on Tuesday, 5 May.

In the commodities market, WTI crude extended losses, slipping to around $108 per barrel after Trump said he would briefly pause an operation to escort ships through the Strait of Hormuz, citing progress toward a broader agreement with Iran. He, however, did not provide further details, while reports suggest the ceasefire between the US and Iran continues to hold despite recent tensions in the Persian Gulf.

Market participants noted that the rupee has been closely tracking oil price movements, with spikes in crude exerting more pressure than temporary pullbacks easing. Persistent weakness in the currency has also fuelled expectations of policy steps to attract dollar inflows.

Technical Views

According to Jigar Trivedi, Senior Research Analyst at IndusInd Securities, USD/INR has key support at 95.00 and 94.90, while 95.20 is seen as an immediate resistance level. He expects a bearish intraday outlook for the currency pair.

According to Amit Pabari, Managing Director of Research at CR Forex Advisors, the USD/INR pair is expected to trade in a near-term range of 88.90–89.80.

He noted that the 88.80–89.00 zone is likely to act as a strong support, while 89.80 remains a key resistance level, with sustained dollar demand continuing to cap rupee appreciation despite broader global relief.

Pabari added that a decisive break below 88.80 would be an early signal of sustained rupee strength, whereas a failure to breach resistance levels may keep the currency under near-term consolidation pressure.

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