Rupee slides to two-month low on West Asia jitters; ends lower at 86.24/$

Indian Rupee today: The domestic currency depreciated 18 paise to end at 86.24 against the dollar, the lowest level since April 9 this year

The Indian rupee fell to its lowest in over two months after a slightly higher open as crude oil prices rose amid rising geopolitical tensions. 

 

The domestic currency depreciated 18 paise to end at 86.24 against the dollar, the lowest level since April 9 this year, according to Bloomberg. The currency has fallen by 0.77 per cent so far this month, and has depreciated 0.73 per cent in 2025. 

 

As Iran-Israel clashes entered day four, US President Donald Trump urged Tehran’s evacuation on Truth Social, saying: “Iran should’ve signed the deal. What a shame and waste of life. Iran can not have a nuclear weapon.” The President cut short his visit to the Group of Seven summit in Canada on Tuesday. 

 

 

This comes a day after a report suggested that Tehran wants to restart nuclear negotiations. After a brief cool-off, crude oil prices staged another rally after Trump's warning. Brent crude price was up 1.64 per cent to $74.43 per barrel, while WTI crude prices were higher by 1.56 per cent at 72.89, as of 3:35 PM IST.  

  Rupee traded weak as rising risk sentiment from escalating Israel-Iran tensions weighed on the currency, according to Jateen Trivedi, VP research analyst - commodity and currency at LKP Securities. "Weakness in capital markets signaled potential FII outflows, adding to rupee pressure."

 

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

 

The dollar rose against most Group-of-10 currencies as investors weighed the rising tensions in West Asia. The dollar index, which measures the greenback against a basket of six major currencies, was up 0.19 per cent at 98.18.

 

If the rupee closes above 86.20 today or on any day, importers may trigger stop-loss levels, potentially pushing the dollar up to 86.70, Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. 

 

That said, the Reserve Bank of India (RBI) has been actively intervening above the 86.20 level, selling dollars to stabilise the rupee, Bhansali said. "Oil prices remain the key driver for the currency, with foreign portfolio investors (FPIs) and oil companies buying dollars to meet their respective outflow requirements."

 

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".