Rupee Appreciates by 13 Paise Against the Dollar in Early Trade Today

Mumbai, June 20 – The Indian rupee gained 13 paise to open at 86.60 against the US dollar in early trade on Friday, supported by a decline in global crude oil prices and a weakening greenback. This marks a rebound after the rupee had depreciated for three consecutive sessions, closing Thursday at 86.73-its lowest level in over two months. During this slump, the rupee lost a total of 69 paise. At the interbank foreign exchange, the rupee opened at 86.65 before dipping slightly to 86.57, reflecting a positive shift in market sentiment.

Brent Crude Drops, Dollar Index Softens

The rupee’s rebound was helped by a 2.08% drop in Brent crude prices, which fell to USD 77.21 per barrel. Lower oil prices let India spend less on imports, which helps the value of the rupee. The US Dollar Index fell by 0.31% to 98.59 at the same time, making currencies from emerging markets like the rupee more attractive.

Geopolitical Concerns Still Linger

Even while things are getting better, tensions in the Middle East are still making the market unstable. Reports say that the White House has put off its decision on possible military action in Iran for two weeks. This gives risk-sensitive assets a short break.

Market View: Exporters Selling, Importers Waiting

According to Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP, the rupee is expected to trade in the 86.35 to 86.95 range. He added that exporters should take advantage of the current levels to sell dollars, while importers may prefer to delay hedging.

Bhansali also noted that if the conflict subsides in July, the rupee may rebound to 85.50–85.75 levels.

Domestic Equities in Green

Indian equities also mirrored optimism in early trade. The BSE Sensex rose 696.16 points to 82,058.02, while the Nifty gained 211.35 points to 25,004.60.

FII Activity Remains Positive

Foreign Institutional Investors (FIIs) were net buyers in the equity market on Thursday, purchasing shares worth ₹934.62 crore, according to exchange data.

The rupee’s rise today reflects easing global pressures, but persistent geopolitical risks and oil price swings remain key factors to watch in the coming weeks.

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