The Indian rupee appreciated well on Wednesday tracking sharp weakness in dollar overseas following a sharp plunge in international oil prices after US and Iran agreed on a two-weak ceasefire. Trump announced that he would suspend planned military strikes against Iran for two weeks, subject to Tehran agreeing to fully reopen the Strait of Hormuz. INR jumped to a three week high and hit a high of Rs 92.45 per dollar during intraday moves. The domestic currency ended the day at 92.55, up 51 paise as compared to previous close at 93.06. Meanwhile, the Reserve Bank of India’s (RBI’s) Monetary Policy Committee (MPC) decided to keep policy repo rate unchanged at 5.25% while announcing its first policy decision of FY27. High frequency indicators till February 2026 suggest the continuation of strong momentum in economic activity, RBI stated in its monetary policy report. Growth impulses continue to be supported by robust private consumption and investment demand. However, the West Asia conflict will adversely impact growth, RBI noted. Higher input costs associated with increase in energy prices and international freight and insurance costs along with supply-chain disruptions could constrain availability of key inputs for downstream sectors, thus impairing growth.