Rupee falls as corporate dollar bids, elevated oil prices weigh
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The Indian rupee declined on Wednesday on the back of persistent corporate hedging activity and elevated oil prices as market participants continued to fret over escalating hostilities in the Middle East.The rupee ended at 86.4775 against the U.S. dollar, down nearly 0.3% from its close of 86.24 in the previous session.The currency slipped past 86.50, a closely watched psychological support level, to hit its weakest level in over two months before slightly paring losses.Traders pointed to dollar bids from local corporates, including oil companies, and speculative interest on wagering against the local currency among factors that hurt the rupee.Oil prices remained elevated - albeit cooling off the highs hit on Tuesday - as markets weighed the chance of supply disruptions from the Iran-Israel conflict. Brent crude oil futures were last quoted at $75.5 per barrel.The tepid risk sentiment also weighed on Asian equity markets with India's benchmark equity indexes, the BSE Sensex and Nifty 50 , logging a fall of about 0.2% each.Meanwhile, the dollar-rupee forward premiums nudged higher. The 1-month forward premium rose to 10 paisa, with traders citing paying interest spurred by arbitrage between non-deliverable and onshore forwards.The 1-year dollar-rupee implied yield also ticked up to 1.83%.Price action on the dollar-rupee pair is "cementing the upward bias," a trader at a foreign bank said, adding that further escalations in the Iran-Israel conflict could push it closer to 87.Later in the day, the focus will be on the U.S. Federal Reserve's policy decision.The central bank is widely expected to keep rates unchanged with updates to its future economic projections and remarks from Chair Jerome Powell keenly awaited by market participants."The Fed will likely consider any oil price shock as much a threat to growth as to inflation," DBS Bank said in a note.
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Time of India
23 minutes ago
- Time of India
Panic in Tehran as Israel–Iran war enters next phase: Trump eyes U.S. response amid rising global fears
What's happening in Tehran as Israel–Iran war intensifies? Live Events Why are thousands of Iranians fleeing Tehran right now? How is Trump responding to the Israel–Iran crisis? How is Israel's attack affecting Iran's leadership and security? Is public anger in Iran now focused more on Israel than on their own government? What's the global fallout from the Israel–Iran conflict? Could this war push Iran's economy to the brink of collapse? What does this mean for the future of Iran's leadership? What happens next for the people of Iran? FAQs: (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel As Tehran braces for war, thousands of residents are now fleeing the Iranian capital in search of safety, fearing more Israeli military strikes. Since Friday, Israel has launched what many describe as Iran's worst military assault since the 1980s Iran-Iraq war, with attacks targeting top officials and major locations. With the economy already in crisis and leadership under severe pressure, uncertainty looms large over Iran's future.U.S. President Donald Trump is reportedly weighing a potential military response as the situation threatens to engulf the region and disrupt global markets. With oil prices spiking and world leaders watching closely, the Israel–Iran war has become a crisis that could shape international politics for years to one of the world's largest and most densely populated cities, is witnessing visible signs of panic. According to multiple reports, long lines have formed outside gas stations, supermarkets, and pharmacies. Residents fear an Israeli airstrike or a regional escalation involving the United fear isn't unfounded. On June 17, Israel reportedly expanded its air operations, targeting key military installations inside Iran. Although Iran's defense systems intercepted some of the strikes, others caused localized damage and sparked widespread fear among authorities have placed Tehran and other major cities on high alert. Government buildings and military zones have been fortified, while emergency sirens and blackout drills are being run at fear in Tehran is palpable. On Tuesday, 35-year-old Neda joined a traffic-choked highway heading out of the city. Her goal: to escape potential Israeli airstrikes targeting military and government sites.'It all started with explosions,' Neda shared through a social media chat from northern Tehran. 'I taped my windows and packed an emergency bag. Then I left.'Tehran, a city of around 10 million people, is now gripped by fear, confusion, and despair. As Israel ramps up its assault—reportedly killing 224 Iranians, most of them civilians, according to Iranian authorities—residents are bracing for Donald Trump is currently reviewing military options, according to sources close to the administration. This includes deploying naval and air support in the Persian Gulf and enhancing the U.S. military presence in Iraq and Kuwait. As of June 18, the Pentagon has not confirmed direct military involvement, but intelligence officials suggest preparations are underway for possible intervention if the situation deteriorates who recently returned from a G7 summit in Italy, told reporters, 'The United States stands with Israel and will respond appropriately to any threat against our allies.'His national security team, including Defense Secretary Tom Cotton and Secretary of State Mike Pompeo, have reportedly been in continuous contact with Israeli defense leaders since the strikes began last Israeli offensive has exposed deep cracks in Iran's intelligence and defense operations. Multiple high-ranking Iranian military and intelligence officials have been targeted or killed in recent strikes, and that's raising tough questions inside the Razzaghi, CEO of Tehran-based consultancy Ara Enterprise, says internal changes are inevitable. 'Even if the regime survives, reforms—especially within the intelligence sector—are unavoidable,' he told Bloomberg. 'This war will change the Islamic Republic.'President Netanyahu has made it clear that his military objectives go beyond Iran's nuclear sites. He aims to directly hit the core of the Islamic Republic's power structure—a message he's taken straight to the Iranian public, urging them to rise against their no. While dissatisfaction with the ruling regime is high and ongoing, Israel's recent attacks have shifted much of the immediate public anger.'My hatred for Netanyahu is growing,' said Neda. 'He's fueling all of this chaos. We were already suffering.'The sentiment is echoed by Nazanin, a 55-year-old finance officer from northern Tehran. Her apartment complex, located near the now-destroyed home of Ali Shamkhani, a senior aide to Supreme Leader Khamenei, was recently hit by an Israeli strike.'I've never supported the Islamic Republic,' she said, 'but now I feel the same hatred for both Netanyahu and the regime. I'm just tired.'The impact of the Israel–Iran war is already being felt far beyond the Middle East. On June 18, global oil prices surged by over, reachingfor Brent crude—the highest since early 2022. Markets across Asia and Europe dipped amid fears of prolonged instability in the have rerouted dozens of international flights to avoid Iranian and Israeli airspace. Lufthansa, Emirates, and Air India all confirmed cancellations or diversions. Meanwhile, the United Nations Security Council has scheduled an emergency session to discuss the growing and China have called for restraint, with Chinese President Xi Jinping urging all sides to 'avoid actions that could spark a larger regional war.' The U.S., however, continues to emphasize its 'unshakable' support for Israel, especially following Iran's alleged involvement in an earlier drone attack that damaged Israeli defense economy, already in crisis due to years of U.S. sanctions, oil dependency, and mismanagement, is now to Bloomberg, a joint Israeli and Western intelligence assessment warns that if the war continues, inflation in Iran could skyrocket to 80% or higher. That could spark widespread the inflation rate in Iran sits around 43%, one of the highest globally (IMF data). The Iranian rial has already dropped over 10% in value on the black market since Friday, as reported by national budget is also heavily strained. According to IMF estimates, Iran needs oil prices at $163 per barrel to balance its finances. With current oil prices hovering around $75, this shortfall only deepens the outcome of this conflict could reshape Iran's leadership, but not necessarily in the way many expect. Experts believe that if Supreme Leader Ali Khamenei were removed or weakened, younger and more hardline figures could take his Esfandiary, a Middle East analyst at Bloomberg Economics, warns that targeting Khamenei might actually fuel nationalism and provoke even more aggressive posturing from Iran's next generation of now, the leadership remains unshaken publicly. Iranian state media even praised a news anchor for continuing to broadcast through bombing raids, showcasing the state's desire to project many ordinary Iranians, the situation is about basic survival. They're packing up, leaving homes behind, and trying to navigate a conflict they had no say in. The psychological toll is mounting as fast as the economic one.'This is no longer just about politics or ideology,' said Nazanin from her temporary refuge outside Tehran. 'It's about staying alive. It feels like a real war now—and no one knows how or when it will end.'As Tehran faces its most volatile moment in decades, the uncertainty is suffocating. Whether or not the regime survives this military and economic storm, Iran will not emerge unchanged. With a collapsing economy, rising nationalist fervor, and a deeply divided society, the path ahead looks difficult—and dangerously residents fear more Israeli strikes, so many are escaping to safer rural is already at 43% and could rise to 80%, pushing Iran toward economic collapse.
Time of India
23 minutes ago
- Time of India
Caught on Flightradar: Did China secretly send weapons to Iran? 3 mysterious cargo planes spark global alarm
Only a day after Israel launched attacks on Iran, a Boeing 747 freighter plane departed from China, the following day, another left from a coastal Chinese city, and then on Monday, a third plane took off from Shanghai, raising concerns that China might be sending weapons to Iran, as per a report. Chinese Flights That Disappeared The three flights that flew in the three consecutive days, which were Boeing 747 freighters, are commonly employed to carry heavy-duty military equipment under government contracts, according to The Telegraph. All three flights took very similar paths, flying west over northern China, crossing into Kazakhstan, then curving south into Uzbekistan and Turkmenistan, and then falling off the radar as it neared Iran, reported The Telegraph. The concerns over what might have been sent from China in the direction of Iran increased as the flight plan indicated that each plane was bound for Luxembourg, but none of the planes were even spotted anywhere near Europe, according to The Telegraph report. ALSO READ: With heat advisory extended, Southern Californians urged to stay cool as outdoor areas are closed off China-Iran Strategic Ties A lecturer at the University of Exeter who specialises in China's relations with the Middle East and North Africa, Andrea Ghiselli pointed out that, 'These cargos cannot but generate a lot of interest because of the expectation that China might do something to help Iran,' quoted The Telegraph. Live Events The doubts arise as China and Iran are strategic partners, who are aligned in their opposition to the US-led world order, and in favour of a new 'multi-polar' phase in global diplomacy, as per the report. While, Iran is also one of China's main energy suppliers, as it sends about two million barrels of oil a day, which might have led Beijing to find ways to support and stabilise the Islamic Republic, according to The Telegraph. Ghiselli explained that, 'The collapse of the current regime would be a significant blow and would generate a lot of instability in the Middle East, ultimately undermining Chinese economic and energy interests,' as quoted in the report. He added that, 'Moreover, in Iran there are probably many that are expecting some kind of help from China,' quoted The Telegraph. The Big Unknown However, it is not possible to know exactly what the cargo planes were carrying unless an independent inspections is done, according to the report. While some of the aircraft which flew later appear to take off from around the same area along the Turkmenistan-Iran border, and go toward Luxembourg, The Telegraph reported, citing publicly available flight data. FAQs Why are these flights raising concerns? Because they vanished from radar near Iran, used large cargo planes suited for military transport, and claimed destinations (Luxembourg) that they reportedly never reached. What kind of aircraft were involved? All three were Boeing 747 freighters, often used in transporting military-grade cargo and government shipments.
United News of India
28 minutes ago
- United News of India
PM Modi arrives in Croatia, in first visit by an Indian PM; received by Croatian PM Plenkovic
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