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>>USD/INR slumps: sharp decline after US‑Iran ceasefire as RBI keeps repo rate unchanged at 5.25%

USD/INR slumps: sharp decline after US‑Iran ceasefire as RBI keeps repo rate unchanged at 5.25%

crypthub

about 5 hours ago

Geopolitical Catalyst

The rupee surged after a two‑week US‑Iran ceasefire was announced, easing global risk sentiment. USD/INR slid from around 83.45 to breach the 83.20 support level, one of the sharpest single‑day drops this year. Lower perceived risk reduced the premium on emerging‑market currencies and hinted at softer oil prices, benefitting India’s trade balance.

RBI Policy Decision

The Reserve Bank of India kept its repo rate unchanged at 5.25%, a move widely expected. Governor Shaktikanta Das reiterated the focus on nudging inflation toward the 4 % target while sustaining growth. The decision reflects a “withdrawal of accommodation” stance amid moderating CPI data.

Market Outlook

Analysts say the simultaneous geopolitical de‑escalation and policy stability created a perfect environment for rupee appreciation. Future movement will hinge on the ceasefire’s durability, global oil prices, domestic inflation trends, and US Federal Reserve actions. Continued stability could attract foreign inflows, while any reversal may quickly erode gains.