USD vs INR: Rupee rises to 94.60 on US-Iran peace deal. Can it strengthen further?

The Indian rupee strengthened by 58 paise to 94.60 against the US dollar in early trade on Monday, driven by a sharp 4.66% decline in Brent crude to USD 83.26 per barrel following a US-Iran peace deal to end their 107-day conflict and reopen the Strait of Hormuz. India's May inflation at 3.9% remained below the RBI's 4% target, supporting macroeconomic stability. Analysts at Kotak Securities expect the rupee to strengthen toward 94, with a potential move to 93 and 92.5 over the following 2-3 months, while the RBI's revival of an NRI deposit window may further attract dollar inflows.