Rupee plunged by 55 paise to close at 86.07 (provisional) against the US dollar on Friday, as rising geopolitical tensions in the Middle East and a spike in global crude oil prices weighed heavily on investor sentiment. The volatility followed Israel’s reported strikes on Iran’s nuclear sites.
Brent crude, the international oil benchmark, surged by 7.27 per cent in futures trade to $74.40 per barrel, heightening concerns about inflation and trade imbalances for oil-importing countries like India.
At the interbank foreign exchange market, the rupee opened at 86.25 per dollar and moved between 85.92 and 86.25 during the session. It eventually settled at 86.07 (provisional), down 55 paise from its previous close of 85.52 on Thursday.
Forex traders cited weak domestic equities and continued outflows by foreign institutional investors (FIIs) as additional pressure points for the rupee.
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said, “Rupee traded very weak below 86.05, down by 0.52 rupees, despite a softer dollar index, as risk sentiment deteriorated sharply following Israel’s attack on Iran. The escalation in Middle East tensions pushed WTI crude prices above $74, marking a 9 per cent surge, which added significant pressure on the rupee. The currency is expected to trade in a volatile range between 85.60 and 86.50 in the near term.”
The dollar index, which tracks the greenback’s strength against a basket of six major currencies, rose 0.33 per cent to 98.24.
Stock Market Summary: Indices tumble
Heightened geopolitical tensions and a sharp rise in crude oil prices led to a major selloff in Indian equity markets on Friday, June 13. The benchmark indices opened deep in the red following reports of Israeli airstrikes on Iran and, although they recovered some losses later in the day, still closed with substantial declines.
Benchmarks log sharp losses; Midcaps, Smallcaps outperform
The BSE Sensex opened sharply lower at 80,427.81, slipping to an intraday low of 80,354.59 — a fall of over 1,300 points. It finally settled at 81,118.60, down 573.08 points or 0.70 per cent. The NSE Nifty 50 dropped 170 points, or 0.68 per cent, to close at 24,718.60, after hitting a low of 24,473 earlier in the session.
Investor sentiment was further dampened by sustained FII selling. According to exchange data, foreign institutional investors offloaded equities worth Rs 3,831.42 crore on a net basis on Thursday.
The selloff wiped out nearly Rs 2 lakh crore in investor wealth in a single trading session.
Anurag Dhole is a seasoned journalist and content writer with a passion for delivering timely, accurate, and engaging stories. With over 8 years of experience in digital media, she covers a wide range of topics—from breaking news and politics to business insights and cultural trends. Jane's writing style blends clarity with depth, aiming to inform and inspire readers in a fast-paced media landscape. When she’s not chasing stories, she’s likely reading investigative features or exploring local cafés for her next writing spot.
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
