Rupee opens flat at 85.48/$; likely to end June muted amid weak dollar

Indian Rupee today: The domestic currency began the session 1 paise higher at 85.48 against the dollar, according to Bloomberg

The Indian rupee opened flat on Monday as the dollar index and oil prices traded slightly lower amid strength in Asian currencies.

 

The domestic currency began the session 1 paise higher at 85.48 against the dollar, according to Bloomberg. The muted opening comes after the currency logged its best week since January 2023, driven mainly by a plunge in crude oil prices amid Iran-Israel conflicts.  

 

The unit has appreciated by around 0.14 per cent so far this month, making it one of the worst-performing Asian currencies.

 

The Indian rupee rose to 86.4750 on Friday, following the completion of selling for the HDB Financial Services IPO, which was oversubscribed 17 times, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. Some outflows may occur due to JSW Paints' acquisition of Akzo Nobel India, and further outflows could follow as HDB Financial’s IPO allotment is announced, he said.  

 

Meanwhile, the dollar index traded lower as trade deals are back in focus with the July 9 deadline approaching for the US reciprocal tariffs to kick in. The US dollar index, which measures the greenback against a basket of six major currencies, was down 0.20 per cent at 97.21.

 

Last week, US President Donald Trump touted that a "very big" trade deal could be signed with India soon. India’s negotiators have extended their stay in Washington to seal the deal before the deadline, according to a Bloomberg report. 

 

India's current account balance recorded a surplus of $13.5 billion (1.3 per cent of GDP) in the January-March quarter of 2024-25 as compared with $4.6 billion (0.5 per cent of GDP) in the year-ago period, RBI said on Friday. The current account was in deficit of $11.3 billion (1.1 per cent of GDP) in the December quarter of 2024-25. 

 

The CAD may widen to 1.2 per cent next year amid uncertainty stemming from US tariffs on Indian exports, Bhansali noted. "The India–US trade deal, expected before the July 9 deadline on reciprocal tariffs, remains a key monitorable. Exporters are advised to wait for levels near 86.00 to sell, while importers may consider buying on dips."

 

In commodities, oil prices extended their fall after posting their biggest weekly plunge in over two years before a likely Opec+ supply hike. Brent crude price was down 0.30 per cent at $67.57 per barrel, while WTI crude prices were higher by 0.43 per cent at 65.24, as of 9:15 AM IST.