Brent crude, the global oil benchmark, dropped 2.73% to $69.53 per barrel in futures trading. The fall came after US President Donald Trump announced that Iran and Israel were close to reaching a ceasefire.
In the foreign exchange market, the Indian rupee opened at 86.07 against the US dollar and later weakened slightly to 86.13, gaining 65 paise compared to its previous close. The rupee had fallen 23 paise to close at a five-month low of 86.78 on Monday.
“Trump said overnight that a ceasefire between Israel and Iran has been reached, although Iran has not confirmed it yet. Still, the market reacted, pushing oil prices below $70,” said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.
He added, “The USD-INR exchange rate rose to nearly 86.00 and opened at 86.07 after Trump’s ceasefire announcement. Now, markets are awaiting Federal Reserve Chair Jerome Powell’s testimony on Tuesday and Wednesday, where he may discuss potential interest rate cuts.”
Meanwhile, the dollar index, which measures the US dollar’s strength against six major currencies, was down 0.29% at 98.13.
In the stock market, Indian equities bounced back from Monday’s losses. The Sensex gained 930.7 points to close at 82,827.49, while the Nifty rose 278.95 points to 25,250.85.
However, foreign institutional investors (FIIs) sold equities worth ₹1,874.38 crore on a net basis on Monday, according to exchange data.
