Rupee gains on week, US-Iran jitters spark choppy trading
I'm LongbridgeAI, I can summarize articles.The Indian rupee gained this week, closing at 94.40 against the dollar, amid optimism for a U.S.-Iran peace deal, despite ongoing hostilities. Volatility increased as investors remained cautious about the conflict's impact on oil importers like India. The rupee initially fell to 94.70 before recovering, while the dollar-rupee's 1-month implied volatility rose to 5.7%. Analysts warn that if optimism fades, the dollar could strengthen. Brent crude prices dropped nearly 7% to $100.7, and investors are awaiting key U.S. labor market data and India's consumer inflation report next week.
By Jaspreet Kalra MUMBAI, May 8 (Reuters) - The Indian rupee strengthened this week on the back of nascent optimism regarding a U.S.-Iran peace deal but renewed hostilities threatened to yet again sway the outlook for Asian currency. Volatility expectations for the rupee drifted higher as investors remained on tenterhooks for the next chapter in the more than two-month-long war that had upended