Mumbai, Apr 8 (PTI) The rupee appreciated 50 paise to 92.56 against the US dollar in early trade on Wednesday after US President Donald Trump announced suspension of military strikes against Iran for two weeks.

Forex traders said the two-week ceasefire announcement triggered a wave of outsized bargain buying amongst the risk assets as Asian Stocks, Dow futures, Gold and Silver all rallied while Brent Oil fell below USD 100 to USD 96 per barrel.

The rupee in accordance surged to 92.56 levels, with the RBI deadline still in place till the 10th of April (regarding squaring of positions taken overnight up to USD 100 million) while the RBI announces its monetary policy today at 10 am.

At the interbank foreign exchange market, the rupee opened at 92.92 against the US dollar, then gained ground to touch 92.56 against the US dollar in initial trade, registering a gain of 50 paise over its previous close.

On Tuesday, the rupee had settled at 93.06 against the American currency.

Attention now shifts to the RBI’s first Monetary Policy Committee (MPC) meeting of FY 2026–27. The key focus areas will be: RBI's outlook on inflation and growth, its assessment of global uncertainties and any indication of focus on currency stability.

"The tone of the policy will be closely tracked, especially given the rapidly changing global environment," CR Forex Advisors MD Amit Pabari said.

The decision of the six-member Monetary Policy Committee (MPC), headed by Reserve Bank Governor Sanjay Malhotra, will be announced at 10 am.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was down 0.90 per cent at 98.96.

Brent crude, the global oil benchmark, was trading lower by 12.68 per cent at USD 95.42 per barrel in futures trade, after the announcement of the ceasefire.

President Trump announced a two-week suspension of military strikes against Iran just hours before his 8 pm ET deadline.

Iran agreed to allow safe navigation through the Strait of Hormuz during the ceasefire, triggering sweeping market moves across oil, equities and currencies.

The rupee is likely to remain range-bound with a bit of volatile moves between 92.50 to 93.50 as the markets await the RBI's monetary policy.

On the domestic equity market front, the 30-share benchmark index Sensex was trading 2527.47 points or 3.39 per cent higher at 77,144.05, while the Nifty jumped 767.25 points or 3.32 per cent to 23,890.90 in initial trade.

Foreign Institutional Investors offloaded equities worth Rs 8,692.11 crore on Tuesday, according to exchange data. PTI DRR DR DR

Rupee appreciation follows ceasefire-driven risk-on buying as markets watch central bank policy and currency stability. The rupee appreciated in early trade after a two-week suspension of military strikes against Iran triggered risk-on buying across currencies, equities and commodities, while Brent crude and the dollar index fell. Foreign exchange conditions were also shaped by the Reserve Bank of India's deadline for squaring overnight positions and the day's monetary policy announcement, with markets expecting the rupee to remain range-bound and volatile as attention shifted to inflation, growth, global uncertainty and currency stability.