USD vs INR: Rupee extends gain on US-Iran peace deal. Where's it headed next?

The Indian rupee strengthened by 5 paise to 94.53 against the US dollar in early trade on 16 June 2026, following a 60-paise gain the previous day, supported by easing US-Iran geopolitical tensions and a fall in Brent crude to around $82.90 per barrel near three-month lows. The US-Iran preliminary peace pact extends the April ceasefire by 60 days and paves the way for reopening the Strait of Hormuz, which handles nearly 20% of global energy shipments, benefiting India as the world's third-largest oil importer. Markets are also awaiting the US Federal Reserve's policy announcement on Wednesday, with expectations of an unchanged rate stance.