The rupee gained 13 paise to trade at 86.60 against the US dollar in early trade on Friday, June 20. The rise came after a drop in global crude oil prices and a weaker US dollar.
On Thursday, the rupee had fallen 30 paise to close at 86.73, marking its lowest level in over two months. It had lost 69 paise over the last three trading sessions.
At the interbank foreign exchange market, the rupee opened at 86.65 and later strengthened to 86.60 against the dollar.
Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, said the ongoing uncertainty in the Middle East and US political decisions continue to affect the currency market.
“The Iran-Israel conflict remains unresolved, and US President Donald Trump has delayed any US involvement by two weeks. The rupee is likely to move between 86.35 and 86.95. Exporters have a good opportunity to sell dollars now, as the rupee may return to 85.50–85.75 levels in July if the fighting ends,” Bhansali said.
He advised importers to wait before hedging and suggested that exporters continue selling at 86.85–86.90. He added that foreign portfolio investors (FPIs) have been small buyers in the equity market in recent days, and most selling has been seen in mid-cap and small-cap stocks, with major indices remaining stable despite the conflict in the Middle East.
Meanwhile, the US dollar index, which measures the dollar’s strength against six major currencies, fell by 0.31% to 98.59.
In domestic markets, the BSE Sensex rose 289.43 points to reach 81,651.30, while the NSE Nifty gained 88.25 points to hit 24,881.50.
Brent crude futures, the global oil benchmark, dropped 2.46% to $76.91 per barrel. Bhansali noted that the decline followed a statement from the White House saying President Trump would decide in two weeks whether to take military action against Iran. The news brought some relief across financial markets after oil prices had surged 3% overnight.
On the investment front, foreign institutional investors bought Indian equities worth ₹934.62 crore on a net basis on Thursday, according to exchange data.
