Indian rupee recovered 61 paise on Thursday to open at 96.25 against the US dollar. On Wednesday, the rupee fell to a record low at 96.95, before recovering slightly to settle at 96.86 by the day’s end.
Indian currency has fallen over 8-9 percent in 2026 alone, terming it as the most undervalued currency in Asia.
The recovery in the rupee came after US President Donald Trump on Thursday said that the ongoing peace talks with Iran are on the “borderline” between a possible deal and renewed strikes.
Trump, who had earlier stated that the negotiations are in their “final stages”, further warned that the window for diplomacy can shut soon.
“It’s right on the borderline, believe me,” Trump said, while speaking to reporters at Joint Base Andrews, near Washington.
Crude oil prices sharply dropped following the positive development to de-escalate the West Asia tensions, throwing the world into the energy crisis and geopolitical uncertainty.
10-year and 30-year US Treasury yields have touched the record highs, as traders are expecting a stick inflation on the horizon, that will spillover into equity markets.
India’s rupee is under pressure amid the elevated crude oil prices which is around $105 per barrel, a jump of 30 per cent from pre-war prices of $70 per barrel. India imports 85-90 percent of its crude oil requirements, and the higher oil price is hurting its forex reserve, which is depleting at a higher rate.
