Rupee surges 75 paise to close at 86.03 against US dollar as global crude oil prices crash
Mumbai, Jun 24 (PTI) The rupee recovered from record low level and closed with a steep gain of 75 paise at 86.03 (provisional) against the US dollar as global crude oil prices went down following hopes of deescalation in Middle East tensions.
A weak greenback and positive sentiments in the domestic equity markets further boosted the local unit, according to forex traders.
Brent crude, the global oil benchmark, plummeted 3.19 per cent to USD 69.20 per barrel in futures trade as US President Donald Trump announced that Iran and Israel agreed to a ceasefire.
At the interbank foreign exchange, the local unit opened at 86.07 against the US dollar and traded in the range of 85.91-86.27 before closing at 86.03 (provisional), up 75 paise from its previous close.
The rupee had plunged 23 paise to close at a five-month low of 86.78 against the US dollar on Monday.
Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said the rupee gained on improved global risk sentiments on reports of a ceasefire between Israel and Iran.
Also, Choudhary said a sharp decline in crude oil prices and positive domestic markets favoured the rupee, while the dollar index softened amid the ceasefire reports.
Going forward, he said, traders may take cues from US consumer confidence and Federal Reserve Chair Jerome Powell's testimony. "USD-INR spot price is expected to trade in a range of ₹ 85.60-86.40."
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.48 per cent lower at 97.94.
In the domestic equity market Sensex rose 158.32 points to settle at 82,055.11, while Nifty climbed 72.45 points to 25,044.35.
Foreign institutional investors (FIIs) offloaded equities worth ₹ 1,874.38 crore on a net basis on Monday, according to exchange data.
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Business Standard
19 minutes ago
- Business Standard
Shares rally, oil slumps as Iran-Israel ceasefire goes into effect
Oil tumbled 3 per cent, global shares surged and the dollar dropped on Tuesday as US President Donald Trump announced a ceasefire between Israel and Iran, a dramatic turnaround after the US bombed Iran's nuclear sites over the weekend. Brent futures had already slid 7per cent on Monday and US shares jumped after Iran made a token retaliation against a US base and signalled it was done for now. With the immediate threat to the vital Strait of Hormuz shipping lane seemingly over, the global benchmark touched its lowest since June 11 and was last at $69.11 a barrel, US crude futures dropped 3.2per cent to $66.32 a barrel. "Investors mostly shrugged at what appeared on the surface a seismic geopolitical event over the weekend and those who kept their nerve and held off from de-risking have so far been proven right," said Kenneth Broux, head of corporate research FX and rates at Societe Generale. Israeli Defence Minister Israel Katz saying he had ordered the military to strike Tehran in response to what he said were Iranian missiles fired in a violation of the ceasefire, did little to disrupt the mood. Iran said it had not violated the ceasefire. Risk assets rallied, with S&P 500 futures up 0.9per cent and Nasdaq futures 1.1per cent higher. Europe's Stoxx 600 gained 1.4per cent, with travel stocks including airlines surging 3.5per cent, while oil and gas names shed 2per cent. Earlier in the day, MSCI's broadest index of Asia-Pacific shares outside Japan jumped 2.2per cent, while Japan's Nikkei rallied 1.1per cent. But the positive news did not spill over into the bond market where the focus instead was on Germany's draft budget, which includes record investment, requiring higher borrowing. The impact was particularly felt on longer dated bonds. Germany's 30-year yield rose 8 basis points to 3.065per cent and its 10-year yield rose 5 bps to 2.60per cent. Those moves rippled across markets, with the US 10-year yield up 2 bps at 4.34per cent and Britain's 10-year yield up 2 bps to 4.51per cent, though increasing bets on US rate cuts this year kept US bonds in check. RATE CUTS APPROACHING? Investors are also keeping a close eye on remarks from Federal Reserve policymakers, who in aggregate have been nervous about giving any signs that rate cuts are imminent. However, Vice Chair for Supervision Michelle Bowman said on Monday the time to cut interest rates was getting nearer as risks to the job market may be on the rise. That followed Fed Governor Christopher Waller saying on Friday he would consider a rate cut at the July 29-30 meeting. Fed Chair Jerome Powell will appear before Congress later on Tuesday and, so far, has been more cautious about a near-term easing. Markets still only imply around a 22per cent chance the Fed will cut at its next meeting on July 30, but a September cut is near-to-fully priced. News of the ceasefire saw the dollar extend an overnight retreat and slip 0.77per cent to 145.0 yen, having come off a six-week high of 148 yen overnight. The euro rose 0.2per cent to $1.1602 on Tuesday, having gained 0.5per cent overnight. The yen and euro benefited from the slide in oil prices as both the EU and Japan rely heavily on imports of oil and liquefied natural gas, while the US is a net exporter. The risk-on mood saw gold prices ease 1.3per cent to $3,323 an ounce. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
The Hindu
31 minutes ago
- The Hindu
A reset in West Asia, a ‘de-escalation' for the world
West Asia has been reset with the bombing of Iran by Israel and the United States. It has been done with the tacit or open approval of almost all countries in the region and beyond. The Europeans have been their usual contradictory noisy self, but made no difference to what is unfolding in West Asia. Even Russia and China, which signed, with much fanfare, Comprehensive Strategic Partnership agreements with Iran in January 2025 and March 2021 respectively, were silent spectators. It is not that all these countries were helpless. They made a conscious decision not to interfere when Iran and its proxies are being dismantled in the region. The reality now Now with the so-called Iranian nuclear threat being rendered ineffective, West Asia is faced with a sole dominant nuclear power — Israel. The region has 40,000 American troops stationed on its soil in addition to numerous air and sea assets. They will make sure that there is no more military challenge to Israel. West Asia will now live with this reality. Initially, the Gulf and other countries of West Asia feared, probably rightly, Iran and its proxies as much as the Israelis. The Iranian strategic and military depth in the region, when seen through the prism of its political ideology, made it the predominant threat in the region. In some ways, the presence of an aggressive Iran made the Gulf countries soft pedal, and even make compromises on many other issues which the region has been plagued with, including Palestine. They needed Israel and the U.S. to balance their vulnerability vis-à-vis Iran, which only encouraged Israel to go all the way out to dismantle the Iranian proxies, both state and non-state actors, in Lebanon, Syria and Gaza. The threat has receded except perhaps for the Houthis in Yemen and the militias in Iraq. In the meantime, the Gulf countries have been busy building bridges with the U.S. administration and waiting to operationalise Abraham Accords, which normalised their relations with Israel. They have made U.S. President Donald Trump happy by doling out goodies. But, with the cutting down of Iran to size in West Asia, do they relish the prospect of an Israel without any checks? Probably not. Can they do something at least now? Iran has hit back. Its missiles have targeted U.S. military bases in Qatar — the biggest U.S. base in West Asia with 10,000 personnel, and in Iraq. Iran claimed proportional retaliation in that the number of missiles used was equal to the number of bombs the U.S. used to attack Iran's nuclear facilities. This represented a dangerous escalation, violating the territorial integrity of one of its own 'brotherly' countries, Qatar, and with the situation threatening to spiral out of control. The retaliation was not entirely unexpected. For Iran's leadership, it is an existential crisis. For the Supreme leader, Ayatollah Ali Khamenei, and the leadership, surrendering or keeping quiet in the face of these attacks are not options if they must survive politically. They know that the end game is regime change to dismantle their theological foundation and political ideology — an ideology which threatens everyone in the region. To that extent, the war with Iran is still a work-in-progress for Israel and the U.S. They will not stop until they do a 'Syria' on Iran. But there is no alternate 'regime' waiting to take their place. Consequently, for their own good, the Gulf states need to step up now to prevent an Iraq- or a Libya-like collapse, which will destabilise everyone in the region. Destabilising regimes in the region has only given a fillip to Islamic fundamentalism and to terrorist organisations such as the Islamic State and al-Qaeda. As one spat ends another crisis begins The dramatic announcement by the U.S. of an immediate ceasefire between Israel and Iran is a surprising voice of reason, at a time when reason has become the biggest casualty in West Asia. After retaliation for the U.S. bombing and proving to the world — and more importantly to its people — that it will not be cowed down, the ceasefire call gives Iran a way out to back down. Let us not forget that Israel too has been hit hard though the western media has played it down. The fact that Iran was ready to hit American bases in the Gulf would have weighed on the U.S. to pressure Israel to stop. It is also a wakeup call for the Gulf leadership that they are not immune. Hopefully, this should stop Iran from making good on other threats such as closing the Strait of Hormuz or exiting the Nuclear Non-Proliferation Treaty. The focus shifts back to the nuclear deal, where both the U.S. and Iran may well be in a mood to find a solution. It is time for the Gulf states to support this process, even if it is late, to save the region from further conflagration. While this spat sputters to an end, the next crisis in West Asia is in the making. With the long-cherished dream of Israel's Prime Minister Benjamin Netanyahu realised under Mr. Trump — to take out Iran's nuclear programme — his domestic political fortunes have been revived dramatically. There are hardly any obstacles now for him to realise his 'Eretz Israel' dream — the promised land from the Jordan river to the Mediterranean Sea. This is the New Middle East map which Mr. Netanyahu waved before the UN General Assembly to 193-member states — a map without Gaza or the West Bank. Israeli plans to annex them very soon and certainly before the U.S. presidential elections in 2026. If his main ultra-right coalition ministerial colleagues Itamar Ben-Gvir and Bezalel Smotrich are to be believed, and there is no reason why they should not be, this annexation will happen this year. All state and non-state actors, which can potentially oppose the move, have been defeated or chastised. The U.S. is also in sync with Mr. Netanyahu in his ambitions. The question will then boil down to these: After its annexation of Palestinian territories, will Israel continue to be an apartheid state by choice to preserve its Jewishness, where the Palestinians will not enjoy equal citizenship and remain second class citizens? Or it will become a genuine democracy by giving the Palestinians equal rights as its Jewish citizens. History indicates that it will be the first. While the opposition to this annexation should come from countries within the region, the Gulf leadership has almost given up pushing Israel for a Palestinian state or even stopping the Gaza war as the price to pay for regional stability and integration with Israel and the outside world, their noisy protestations within and outside the UN notwithstanding. However, if they think that peace and security will be restored by annexing Palestinian territories or even status quo of occupation retained (56,000 Palestinians have been killed in Gaza, those displaced, face daily threats, starvation and displacement, while people in the West Bank are driven out of their homes to make way for Jewish settlers), they may be forced to rethink their strategy. India's stand Expectedly, India has neither made pronouncements on the Israeli preemptive strikes on Iran nor taken an active role — just as it has not in other wars elsewhere. Israel was one of few countries to stand by India during Operation Sindoor. However, India's joint initiatives with Iran, including Chabahar port connectivity, are equally important. India's stakes in the region are high and it is doing all it can to minimise the impact. India has, tongue in cheek, called for a 'de-escalation', giving the same advice to warring parties which it received during Operation Sindoor from many parts of the world, asking India and Pakistan to de-escalate. It was a case of equating the aggressor and the aggressed. It matters no more to the world, whether one is right or wrong or whether international law or territorial integrity have been violated, as long as the warring sides 'de-escalate'. T.S. Tirumurti is former Secretary, Ministry of External Affairs in-charge, inter alia, of West Asia and former Representative of India to the Palestinian Authority in Gaza
Time of India
33 minutes ago
- Time of India
Crude oil slides to $66 after Trump announces Iran-Israel ceasefire
New Delhi: Crude oil prices sank to $66 a barrel on Tuesday after US President Donald Trump announced an Iran-Israel ceasefire , despite lingering doubts about its durability. Benchmark Brent crude traded around $66.21 per barrel by late Tuesday evening. Prices had surged to $79 a barrel on Sunday following the US bombing of Iranian nuclear facilities but the volatile commodity gave up all gains after Tehran's muted response. Iran's missiles at the US military base in Qatar on Monday night were neutralised, causing no casualties, and appeared to be aimed at winding down the conflict rather than escalating it. "I want to thank Iran for giving us early notice, which made it possible for no lives to be lost, and nobody to be injured. Perhaps Iran can now proceed to peace and harmony in the region and I will enthusiastically encourage Israel to do the same," Trump wrote in a social media post, ahead of announcing a ceasefire. Industry executives expect prices to ease as the ceasefire takes hold and the global supply-demand balance favours lower prices. "The geopolitical premium is fading. Prices should now be guided primarily by supply and demand," said an executive, adding that increased OPEC+ production and weaker demand growth projections would drive prices down. For days, markets feared an aggressive Iranian retaliation that could disrupt energy flows from the Gulf, especially through the Strait of Hormuz , which handles about 30% of global oil trade and 20% of LNG shipments. Yet those fears proved unfounded as Iran refrained from attacking any oil tankers, opting instead for intermittent missile strikes, first on Israel for nearly a week and then on a US military base in Qatar on Monday night.
