The rupee opened at 86.14 per dollar, down 55 paise from Thursday’s (June 12’s) close of 85.60. This marks the sharpest single-day decline in recent weeks.
Tensions soared after Israel launched Operation Rising Lion, targeting Iranian nuclear and missile sites. Iran threatened “bitter” retaliation, and confirmed the death of Gen.
Hossein Salami, commander of its paramilitary Revolutionary Guard, in one of the strikes. Israel called the strikes vital to its national security.
Global markets reacted swiftly.
Brent crude surged 9% to $75.61 per barrel, raising concerns over India’s oil import bill. The dollar index also spiked to 98.20 from 96.92, making the greenback stronger against most currencies, including the rupee.
To contain the volatility, the Reserve Bank of India (RBI) likely intervened by selling dollars. Traders said the RBI sold greenbacks near the 86.05 level through state-run banks, according to news agency Reuters.
“The rupee dropped to 86.20 but recovered to 86.04 after the RBI stepped in,” a dealer at a state-run bank told Reuters.
Currency markets remain jittery amid geopolitical uncertainty. With oil prices rising and foreign outflows likely, the rupee could remain under pressure in the near term. The RBI’s intervention may provide only temporary relief if tensions escalate further, experts say.
Market participants now await further signals from global leaders and crude trends, while keeping a close eye on central bank actions to defend the rupee.
–With Reuters inputs
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First Published: Jun 13, 2025 10:17 AM IST
