The Indian Rupee rose for a fourth straight session on Wednesday, while forward premiums eased, as a drop in oil prices following the US-Iran ceasefire boosted global risk sentiment.

The Rupee closed at 92.58 per US Dollar, up 0.5% from Tuesday’s 93.0075. It opened stronger at 92.64 and briefly traded above 92.50 during the session. The currency has gained 2.4% so far in April, Reuters news agency reports.

Meanwhile, the one-year implied rate on the Dollar/Rupee forward fell 22 basis points to 3.08%.

Brent crude prices plunged nearly 14% after Iran and the US agreed to a two-week ceasefire and reopened the Strait of Hormuz, providing a boost to the Rupee and other Asian currencies.

Israel also supported the pause in strikes on Iran, and the ceasefire helped lift investor confidence in risk assets, with Indian equities surging nearly 4%.

The agreement offered major relief to global markets, which had recently faced uncertainty over the duration of the conflict and its potential effects on inflation and economic growth.

“With improved risk sentiments in the market, the Rupee is likely to ‌trade ⁠with an appreciation bias in the near-term in the range of 92-93. From a medium-term perspective, we still do anticipate the rupee to depreciate through FY27 and see a move towards a range of 94-96 by year-end,” according to a note by HDFC Bank.

The Rupee showed little response to the Reserve Bank of India’s (RBI) policy announcement on Wednesday, which largely met market expectations.

Governor Sanjay Malhotra said recent measures, including limits on banks’ foreign exchange positions and restrictions on offering non-deliverable forwards, were intended to curb Rupee volatility and would not be permanent.

He added that the RBI had seen elevated FX market volatility in recent weeks, partly due to arbitrage trades by banks, but underscored that the steps were a targeted response to specific market movements rather than a structural shift.