Indian Rupee Surges as Oil Prices Plummet Amid US Shift

The Indian Rupee (INR) surged against the US Dollar (USD) near Tuesday's close, driven by a significant decline in oil prices and US Treasury yields. The USD/INR pair dipped to nearly 95.40, its lowest level in over a week.

Oil prices plummeted due to the US shifting from military escalation to economic pressure on Iran, reducing anxiety in the oil market. Analysts at SaxoBank noted that this shift has eased some of the oil market's tension.

The decline in oil prices brought relief to bond markets, with US Treasury yields decreasing across the curve. The 10-year yield fell 0.6% to near 4.67%, while the 30-year yield dropped 0.55% to around 5.20%. Lower US bond yields made riskier currencies like the INR more appealing.