On Thursday, the Indian rupee strengthened for the second consecutive day, closing at 94.25 per dollar, marking a 0.39% gain from the previous close of 94.61 per dollar. This appreciation was largely driven by a decline in crude oil prices, which fell below $100 per barrel, reaching a low of $95.66/bbl. Reports of a potential temporary understanding between the United States and Iran to halt hostilities contributed to dollar sales and short covering in the domestic currency market. The rupee has gained over 1% in the last two trading sessions, reflecting a broader positive trend among Asian currencies. Analysts, including Abhishek Goenka, noted that the decline in oil prices has reduced inflationary pressures and weakened the dollar's safe-haven appeal. However, concerns remain regarding India's balance of payments deficit, estimated at $68 billion for FY27, with suggestions that the Reserve Bank of India (RBI) may need to implement foreign currency deposit schemes to support the rupee. In related market activity, the benchmark 10-year Indian government bond yield ended at 6.93%, while the RBI reported a surplus liquidity of ₹2.65 trillion in the banking system.