The Indian rupee strengthened by 24 paise to 93.74 against the US dollar in early trade on Monday, supported by easing crude oil prices, improving foreign fund inflows and optimism over a possible de-escalation of tensions in the Middle East.
Forex market participants said the rupee's outlook remains positive, as progress towards a peace agreement in the region could lower the geopolitical risk premium on crude oil and provide further support to the domestic currency.
Sentiment also improved after US President Donald Trump indicated over the weekend that fresh military strikes against Iran were unlikely if negotiations progressed and both sides reached a strong agreement.