Last Updated:June 13, 2025, 18:34 IST
At the interbank forex, the rupee opened at 86.25 and moved between an intraday high of 86.25 and a low of 85.92 against the US dollar.
Weak domestic equity markets and FII outflows further contributed to the fall in the Indian rupee, forex traders say.
The Indian rupee on Friday declined 55 paise to 86.07 (provisional) to a US dollar amid costlier crude oil and Israel-Iran tensions. It had closed at 85.52 in the previous session on Thursday.
At the interbank forex, the rupee opened at 86.25 and moved between an intraday high of 86.25 and a low of 85.92 against the US dollar.
Weak domestic equity markets and FII outflows further contributed to the fall in the local unit, forex traders said.
“The rupee fell to a low of 86.25 before recovering to 85.92 before ultimately closing at 86.07. It has taken one country’s military strike on another to bring home the fragility of markets,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
“RBI did support the rupee… oil prices were a concern as an increase of USD 10 increases trade deficit by USD 12 billion and CPI inflation by 50 bps,” he said.
Brent crude futures rose $8.64, or 12.45%, to $78.00 a barrel by 0825 IST, the highest in the past five months. US equity futures plunged 1.8% and safe-haven demand boosted the struggling dollar.
“The real concern for the rupee isn’t just today’s oil spike – it’s the risk of a sustained rally if Middle East tensions deepen,” a currency trader at a Mumbai-based bank told Reuters.
According to the trader, the 86.00 to 86.10 zone is a major support for the rupee, though he warned that defending it “will be challenging”.
Israel said early on Friday that it struck Iran, and Iranian media said explosions were heard in Tehran as tensions mounted over US efforts to win Iran’s agreement to halt production of material for an atomic bomb.
Indian equities markets on Friday also took a hit of global tensions. The BSE Sensex declined 573 points, or 0.70%, to settle at 81,118, while the NSE Nifty50 slipped 169 points, or 0.68%, to close at 24,718. Earlier in the session, the Sensex had tumbled as much as 1,337 points to hit a low of 80,354, and the Nifty fell to 24,473 at its day’s bottom.
Safe-haven demand lifted the Japanese yen and the Swiss franc and helped the dollar index recover to the 98 handle. The 10-year US yield dropped despite the jump in oil.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
- First Published:
#Rupee #Falls #Paise #Costlier #Crude #IsraelIran #Tensions #Check #Details
