FX.co ★ Indian Rupee Hits 1-Month High

The Indian rupee strengthened to around 92.6 per dollar, advancing for a second consecutive session to reach a one-month high. The currency was buoyed by a sharp decline in oil prices and a broad rally across Asian currencies following a two-week ceasefire in the Middle East. The truce, brokered by Donald Trump less than two hours before a self-imposed deadline to reopen the Strait of Hormuz, helped reduce geopolitical uncertainty, lifted risk assets, and supported the normalization of energy trade and shipping activity.

In the run-up to the Reserve Bank of India’s policy decision later today, the rupee also drew support from earlier steps to tighten bank and corporate foreign-exchange operations, as well as from falling US Treasury yields and a weaker US dollar. Sentiment was further bolstered by expectations that India and New Zealand will sign a Free Trade Agreement on April 24. The deal is anticipated to grant tariff-free access for Indian goods to the New Zealand market and could attract up to USD 20 billion in investment over the next 15 years.