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Indian rupee gains 25 paise as oil prices fall and US Iran tensions ease, but currency remains under pressure, RBI seen exploring steps to boost dollar inflows.
By Anshul May 6, 2026, 9:09:08 AM IST (Published)
2 Min Read
The Indian rupee opened stronger on Wednesday (May 6), gaining 25 paise against the US dollar, supported by a pullback in global crude oil prices and easing geopolitical concerns.
The domestic currency opened at 95.04 per dollar, compared with Tuesday’s (May 5's) close of 95.28, recovering from its recent slide that had pushed it to a record low of 95.43 in the previous session.
The rebound in the rupee came alongside a decline in oil prices after US President Donald Trump signalled a possible breakthrough in talks with Iran.
Brent crude July futures extended losses in the Asian session, 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 towards a broader agreement with Tehran.
However, he did not provide further details, and there was no immediate response from Iran.
Oil markets have remained volatile amid shifting headlines on US-Iran tensions. Concerns about escalation had risen earlier after Trump indicated plans to escort stranded tankers through the strategic waterway.
Analysts noted that the ceasefire between the US and Iran appears to be holding despite recent tensions in the Persian Gulf, which has helped ease immediate supply concerns.
According to ING Bank, the pause in US operations could exert further downward pressure on oil prices, offering some relief to oil-importing countries like India. The rupee has been closely tracking movements in crude, with rising oil prices exerting more pressure than the support offered by declines.
Despite the day’s gains, the rupee remains under pressure, prompting expectations of policy measures to boost dollar inflows. Reports suggest the Reserve Bank of India is exploring options to attract foreign currency, including potential steps to mobilise external capital.
Separately, there are indications that authorities may consider allowing state-run banks to raise funds through foreign-currency bond sales.
-With Reuters inputs
