The rupee surged 65 paise to 86.13 against the US dollar in early trade on Tuesday, driven by optimism surrounding a potential ceasefire between Iran and Israel, which led to a sharp drop in crude oil prices.

According to forex traders, a weaker US dollar and a strong opening in domestic equity markets also supported the rupee’s upward movement.

Brent crude, the global oil benchmark, fell 2.73% to USD 69.53 per barrel in futures trade after US President Donald Trump announced that Iran and Israel were nearing a ceasefire agreement.