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The rupee traded in a narrow range against the US dollar in early trade on Wednesday (June 18, 2025), which was weighed at the local unit in the prevailing risk-to-sentiments, and rising crude oil prices.
In the Interbank Forex, the domestic unit saw heavy instability. It opened against Greenback at 86.42, then touched an early high of 86.25 against Greenback in the initial trade.
On Tuesday (June 17, 2025), the rupee fell by 30 money at 86.34 against Greenback.
Forex traders stated that geopolitical uncertainty, prevailing risk-to-sentiments, and rising crude oil prices collectively put pressure on the local currency. In addition, the demand for strong dollars from oil importers carried out investment sentiments.
CR Forex Advisors MD – Amit Pabri said, “Middle East stress is promoting safe flow, pulling investors towards dollars and away from emerging markets. With global winds in favor of greenback, the rupee is under pressure,” CR Forex Advisors MD – Amit Pabri said.
Mr. Pabri further stated that 86.20 resistance is now broken, the USDINR pair is likely to move towards the 86.50-86.80 zone, with 86.00 work as immediate support. Crude strength, trade tension and dollar flexibility continue to weigh the rupee.
Meanwhile, the dollar index, which detects the strength of greenback against a basket of six currencies, was trading less than 0.16% at 98.66.
Global Oil Benchmark Brent crude, futures trading increased by 0.42%to $ 76.77 per barrel, as the Israeli-Iran struggle pushed the possibility of supply disruption.
“Oil can already put pressure on India’s trade deficit, additional stress of potential pharma tariffs can spoil the current account and inflation trajectory, which can increase the rupee on the defensive,” Mr. Pabri said.
In the domestic equity market, 30-cheer BSE Sensex advanced to 233.79 points, or 0.29%, 81,817.09, while the Nifty rose 89.70 points or 0.36%to 24,943.10.
According to exchange data, foreign institutional investors (FII) on Tuesday bought equity worth 1,482.77 crore on a pure basis.
Published – June 18, 2025 10:33 AM IST