On Monday, the Indian rupee rose by 35 paise to close at 95.25 against the US dollar, marking its third consecutive day of gains. The appreciation comes amid optimism regarding a potential peace deal between the US and Iran, despite ongoing disputes over critical issues like the Strait of Hormuz blockades. Forex traders noted that the rupee opened at 95.36, hitting an intraday high of 95.12 before settling at 95.25. Reserve Bank of India (RBI) Governor Sanjay Malhotra emphasized that the rupee is not overvalued, suggesting it may even be undervalued following its recent depreciation. The positive sentiment was further bolstered by US President Donald Trump's comments on the peace negotiations, which he stated should not be rushed. Additionally, the dollar index decreased by 0.26%, while Brent crude oil prices fell to $98.26 per barrel, which could influence inflation and energy costs in India. The domestic equity market also saw significant gains, with the Sensex rising by 1,073.61 points.