The rupee appreciated for the third straight session on Tuesday (June 16, 2026) to close 5 paise higher at 94.53 (provisional) against the U.S. dollar, supported by easing West Asia tensions and extended fall in crude oil prices.

Forex traders said that with the reported de-escalation of the U.S.-Iran conflict and diplomatic agreements regarding the Strait of Hormuz, the immediate threat to global energy supplies has significantly reduced.

Moreover, softening of the U.S. dollar and a decline in U.S. treasury yields also supported the USD/INR pair, they said.

At the interbank foreign exchange, the rupee opened at 94.69 against the U.S. dollar and traded in the range of 94.48-94.71. Eventually, it settled at 94.53 (provisional), up 5 paise from its previous close.

“We expect the rupee to trade with a positive bias as global markets cheer the U.S.-Iran deal, which has boosted global risk sentiments. Declining US dollar and falling crude oil prices may further support the rupee.

“Easing inflation concerns and expectations of fresh foreign inflows may also support the rupee. USDINR spot price is expected to trade in a range of 94.10 to 94.90,” said Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan.

On Monday (June 15), the rupee strengthened by 60 paise to settle at 94.58 against the U.S. dollar.

In the past three trading sessions, the USD/INR pair has gained 132 paise against the U.S. dollar.

Forex traders said that with oil prices moving in India’s favour and foreign inflows remaining supportive, the near-term outlook for the rupee remains positive.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.61, lower by 0.01%.

Brent crude, the global oil benchmark, was trading down 1.68% at $81.77 per barrel in futures trade.

“For India, which imports nearly 90 per cent of its oil requirements, lower crude prices are often like a favourable wind behind a ship supporting the rupee,” CR Forex Advisors MD Amit Pabari said.

On the domestic equity market front, Sensex rallied 544.15 points to settle at 76,808.48, while the Nifty climbed 135.25 points to 23,989.15.

Foreign institutional investors turned buyers, purchasing equities worth ₹200.05 crore on a net basis on Monday (June 15, 2026), according to exchange data.

Meanwhile, U.S. Vice-President J.D. Vance will lead the U.S. delegation for the in-person signing of the peace deal with Iran in Switzerland on Friday, President Donald Trump said.

Both Mr. Trump and Mr. Vance have electronically signed the framework agreement with Iran’s lead negotiator Mohammad Bagher Ghalibaf, according to a senior U.S. official quoted by The New York Times.

The Strait of Hormuz, located between Iran and Oman, is considered one of the world’s most important energy chokepoints, carrying a substantial share of global oil and liquefied natural gas exports.