Rupee also rises to 5-week high on peace deal hopes

The Indian rupee rallied to a five-week high, closing 40 paise stronger at 94.71 against the US dollar, driven by risk-on sentiment across Asia on hopes of a US-Iran peace deal expected by June 19. RBI's new policies to boost foreign currency inflows and expectations of lumpy dollar inflows via FCNR(B) accounts also supported the currency. Benchmark bond yields fell to a two-month low of around 6.83% intraday before closing marginally higher at 6.87%, down more than 15 bps since June 3.