• The Indian rupee strengthened by 0.4%, closing at 95.35 per US dollar.
• The gain was driven by a decline in global crude oil prices and expectations of improved foreign currency inflows.
• Brent crude prices fell around 2% after Iran and Israel announced a halt in attacks following diplomatic efforts.
• Lower oil prices helped ease concerns over India's import bill and balance of payments deficit.
• RBI's recent measures to attract foreign capital and boost dollar inflows have improved market sentiment toward the rupee.
• Analysts believe these measures could help reduce pressure on India's external accounts and foreign exchange reserves.
• Despite the improvement, experts caution that India's current account deficit remains highly dependent on global oil prices.
• If crude prices remain elevated over the long term, risks to economic growth, inflation, and government finances could persist.
• The rupee is expected to remain on a gradual depreciation path in the coming months, though at a slower pace than previously anticipated.
• Indian banking stocks gained after RBI extended a subsidised forex swap facility for overseas foreign currency borrowings.
• The Nifty Bank Index rose 2%, while the broader Nifty 50 gained 0.5%.