Rupee snaps three-day losing streak; opens 9 paise higher at 86.64/$

Indian Rupee today: The domestic currency rose 9 paise to open at 86.64 against the dollar, according to Bloomberg data

The Indian Rupee snapped a three-day losing streak on Friday, a day after hitting a three-month low, as tensions in the Iran-Israel conflict escalated.

 

The domestic currency rose 9 paise to open at 86.64 against the dollar, after closing at 86.73 on Thursday, according to Bloomberg. During the previous session, the currency fell as low as 86.90, taking the fall to 1.19 per cent so far this month. 

 

The rupee is down 0.75 per cent this week through Thursday, putting it on track for its worst weekly performance in one and a half months, according to Reuters. 

 

The uncertainty around the Iran-Israel conflict continues, with US President Trump delaying the country’s response to Iran by two weeks, according to analysts. 

 

 

The White House said Trump still considers negotiations with Iran an option and will decide on supporting Israel within two weeks, leaving investors uncertain. However, Israel said it destroyed nearly half of Iran’s missile launchers, adding that its strikes create the conditions for the downfall of the Iranian government. 

 

Crude oil prices fell after a volatile session after Trump's two-week decision. Brent crude price was down 2.46 per cent at $76.91 per barrel, while WTI crude prices were higher by 0.71 per cent at 75.67, as of 9:20 AM IST.

 

The rupee, which touched a three-month low of 86.90 on Thursday, is set to open at 86.62 this morning and is expected to trade in the 86.35–86.95 range, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. 

 

Exporters are seeing favourable levels to sell dollars, especially with the possibility of the rupee strengthening back to 85.50–85.75 in July if the conflict eases, Bhansali said. "Importers, on the other hand, should wait to hedge and can consider covering immediate cash requirements around 86.50, with better hedging opportunities likely below 86." 

 

Foreign portfolio investors (FPIs) have bought equities worth ₹3308.32 crore over the past three days. Most of the selling pressure has been in the mid- and small-cap segments, while broader indices have remained stable despite geopolitical tensions, Bhansali said. "Inflows are expected this week and next, especially with the upcoming HDB Financial Services IPO." 

 

The US dollar index, which measures the greenback against a basket of six major currencies, was down 0.31 per cent at 98.60. The Index remains under pressure, unable to sustain above 100, despite global risk aversion, Bhansali noted.