INR vs USD: Indian rupee strengthens to 94.26 against US dollar on June 15; check key factors here

US President Donald Trump, on Monday morning, India time, said that the United States and Iran have agreed to a peace deal, and the agreement is set to be signed later this week, on Friday, June 19.

This positive development from the third round of negotiations between the two countries resulted in boosting the overall market sentiment, in turn, fuelling the demand for emerging market bets among investors.

Data collected from Investing.com showed that the Indian rupee strengthened 0.88% to 94.26 against the US dollar on Monday, compared with 95.1 at the previous currency market session.

The exchange data further showed that the Indian currency (USD/INR currency pair) has strengthened 1.25% against the US dollar in the past one week, and 1.49% against the greenback over the last one month.

Forex traders said that the Indian rupee recorded a strong start to the day on Monday, due to the weaker US dollar and stronger equity market performance. Experts also predict that the appreciating trend will continue, and the rupee is likely to trade range-bound with scope for further appreciation in the upcoming period.

Weak US dollar rate

The global benchmark currency, the US dollar, was witnessing lower demand and selling pressure from the global forex investors as the dynamic geopolitical tensions now turn positive amid the US-Iran peace deal update.

Data collected from the US Bloomberg Dollar Spot index (DYX) showed that the greenback was trading 0.23% lower at 99.513 as of 2:30 am (ET) in the United States, compared to the previous currency market close.

In cases of easing market sentiment, global market traders are likely to shift their bets from safe-haven assets like the US dollar into emerging market currencies and other riskier assets like equities.

This movement of capital fuels major inflows into emerging market currencies like the Indian rupee, in turn fuelling their demand in the open market. So, along with the easing pressure in the market and the investor rearranging their investments, the domestic currency was witnessing key support on Monday, June 15.