India’s rupee strengthened as oil prices dropped on hopes of a US-Iran deal and on comments by the central bank Governor that the currency may be undervalued.

Emerging-market stocks and currencies gained on the week as investors grew increasingly hopeful that the US and Iran are moving closer to a peace deal.

India’s rupee advanced the most in Asia after the central bank intervened and as policymakers are said to be considering options, including an interest-rate hike, to defend the currency.

India’s central bank intervened to shore up the struggling rupee as elevated oil prices pushed the currency to a record low.

The Reserve Bank of India should temper its currency intervention efforts, and continue with measures to open up the nation’s markets, a former governor said, about a month after the monetary authority imposed sweeping curbs to support a struggling rupee.

India’s central bank is weighing a plan for state lenders to sell foreign-currency bonds, mulling a tool last used nearly three decades ago to draw capital inflows and shore up the beleaguered rupee, according to people familiar with the matter.

India is planning an electronic platform for trading bond forwards, according to people familiar with the matter, in a bid to improve price discovery in a market that operates largely over the counter.

Most emerging-market currencies weakened on Monday as Iran fired missiles at the United Arab Emirates for the first time in almost a month, weakening an already fragile ceasefire, while optimism over artificial intelligence buoyed stock markets in Asia.

India’s central bank-supervised clearinghouse is making changes to its trade reporting system to bring it more in line with global standards and to make it easier for lenders to disclose their offshore rupee trades, according to people familiar with the matter.

For the full experience visit: Indian Rupee's Big Swings Under Central Bank Chief Malhotra's Watch

For the full experience visit: Indian Rupee's Big Swings Under Central Bank Chief Malhotra's Watch

India’s sovereign debt clearinghouse sent an application to European authorities to be recognized as a permitted trading counterparty, according to people familiar with the developments, potentially paving the way for lenders like Deutsche Bank AG and BNP Paribas SA to trade bonds more easily in the country.

India’s sovereign debt clearinghouse sent an application to European authorities to be recognized as a permitted trading counterparty, according to people familiar with the developments, potentially paving the way for lenders like Deutsche Bank AG and BNP Paribas SA to trade bonds more easily in the country.

India’s central bank eased some restrictions on lenders’ currency market transactions, signaling a partial rollback in some of its most aggressive steps in decades to defend the rupee.

India’s central bank is seeking input from commercial lenders on how they can bring in larger and more stable deposits, as a shift in household savings into equities and other investment products threatens to snowball into a bigger problem for the country’s banks.

A country whose economy is growing faster than those of its peers would typically see its currency strengthen. India has been expanding more quickly than most other Asian economies, including manufacturing powerhouse China, yet the rupee has fallen in value every year since 2018.

Emerging-market stocks rallied Friday, recording their biggest weekly advance since the Covid era, as optimism grew that the fragile ceasefire in the Middle East will hold.

India’s boldest effort in a decade to support the rupee runs the risk of pushing away the global investors it’s spent years wooing.

The Reserve Bank of India’s recent currency market curbs aimed at quelling speculation against the rupee are temporary and will not remain in place forever, Governor Sanjay Malhotra said.

The Reserve Bank of India’s recent currency market curbs aimed at quelling speculation against the rupee are temporary and will not remain in place forever, Governor Sanjay Malhotra said.