Rupee extends slide on West Asia tensions; opens lower at 86.37/$

Indian Rupee today: The domestic currency depreciated 13 paise to end at 86.37 against the dollar, the lowest level since April 9 this year

The Indian rupee continued to slide against the dollar as speculation of US involvement in the West Asia conflict fueled risk-off sentiment. 

 

The domestic currency depreciated 13 paise to open at 86.37 against the dollar, the lowest level since April 9 this year, according to Bloomberg. The currency has fallen by 0.86 per cent so far this month, and has depreciated 0.75 per cent in 2025. 

 

As noted earlier, the rupee closing above 86.20 opens the path to 86.70, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. With the currency opening at 86.38 today, it may rise toward 86.60 unless the Reserve Bank of India (RBI) intervenes, he added. 

 

Exporters should continue selling, as the rupee could retreat to 85.50 once the conflict ends, Bhansali said. "Importers are advised to wait for a correction to buy dollars and use existing forward contracts in the meantime." 

 

After cutting short his visit to the Group of Seven summit in Canada on Tuesday, US President Donald Trump pushed Iran for an "unconditional surrender" in its fight with Israel. As missile exchanges continued for a fifth straight day, reports indicated that Israeli strikes had damaged Iran’s underground uranium enrichment facility at Natanz.

 

Crude oil prices shot up to near a five-month high after Trump warned Iran to surrender. Brent crude price was up 0.54 per cent to $76.86 per barrel, while WTI crude prices were higher by 0.63 per cent at 75.31, as of 9:05 AM IST. 

 

Brent prices can touch $150 a barrel (bbl) — up a whopping 103 per cent from the current levels — in the worst-case scenario if the Israel–Iran geopolitical tensions escalate, suggest analysts. Read more 

 

Meanwhile, the dollar index edged lower a day after seeing soft US data on retail sales and Industrial Production, with both missing expectations. The index, which measures the greenback against a basket of six major currencies, was down 0.14 per cent at 98.68.

 

However, the focus will now turn to the US Federal Reserve as it gears up to announce its rate decision later today. The Fed is expected to keep rates on hold in June and July, according to a Bloomberg report.

 

Meanwhile, RBI's chief Sanjay Malhotra said that if inflation is below the central bank's current projections, it could open up policy space. But he added that incoming data will be watched closely to strike "the right growth-inflation balance".