17 hours ago
At the interbank foreign exchange, the rupee opened at 85.96 before strengthening to 85.93. It had closed at 86.04 on Monday (June 16).
By Anshul June 17, 2025, 10:05:54 AM IST (Published)
The Indian rupee appreciated 11 paise to 85.93 against the US dollar in early trade on Tuesday (June 17), despite pressure from higher global crude prices and a stronger greenback.
At the interbank foreign exchange, the rupee opened at 85.96 before strengthening to 85.93. It had closed at 86.04 on Monday (June 16).
Currency dealers said the rupee found support from likely dollar sales by the Reserve Bank of India (RBI) near the 86.20 level.
“The RBI seems active around 86.20, helping limit rupee weakness,” said Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors. He noted that if the rupee breaches 86.20, it may trigger stop-losses for importers, possibly pushing the dollar up to 86.70.
Global factors weighed on sentiment. Brent crude rose over 1.5% to $74.40 per barrel amid concerns of supply disruption due to the Israel-Iran conflict. The dollar index was at 98.24, reflecting strength in the US currency.
US equity futures declined after reports suggested the U.S. may escalate its response to the Middle East crisis. Analysts said risk aversion could lead to more dollar demand.
Back home, the equity market opened weak. The Sensex dropped 127 points to 81,669, while the Nifty declined 55 points to 24,891.
On the macro front, data showed India’s unemployment rate rose to 5.6% in May, up from 5.1% in April, mainly due to seasonal factors.
Meanwhile, trade data for May showed exports contracted 2.17% year-on-year to $38.73 billion, while imports fell 1.7% to $60.61 billion. The trade deficit narrowed to $21.88 billion.
Foreign institutional investors sold equities worth ₹2,539 crore on Monday, as per exchange data. However, bond flows turned positive, with net purchases of $31.7 million, according to NSDL.
