Rupee posts second-best session in 2025 as oil prices ease; ends at 85.97/$

Business Standard

8 hours ago

Indian Rupee advanced below the 86 level on Tuesday, unfazed by any ceasefire breach by Iran and Israel, just hours after it was announced by US President Donald Trump earlier.
The domestic currency posted the steepest gains since May 23, as it appreciated 78 paise to close at 85.97 against the dollar, according to Bloomberg. The unit also posted the second-best session so far this year.
After agreeing to a ceasefire, Israel accused Iran of breaching the truce brokered by US President Donald Trump. Israeli defence minister instructed the military to 'respond forcefully to Iran's violation of the ceasefire with powerful strikes against regime targets in the heart of Tehran,' Bloomberg reported.
Hours after Iran launched missiles at the US air base in Qatar -- which were all intercepted -- Trump said Iran and Israel agreed to a 'complete and total ceasefire.' Iran's retaliation at American military bases comes a day after the United States carried out airstrikes on three of Iran's nuclear sites.
Crude oil prices trimmed early losses after Iran-Israel ceasefire violations. Brent crude price was down 3.18 per cent at $69.21 per barrel, while WTI crude prices were lower by 3.20 per cent at 66.32, as of 3:33 PM IST. Meanwhile, the US dollar index, which measures the greenback against a basket of six major currencies, was down 0.45 per cent at 97.97.
Markets now await US Federal Reserve Chair Jerome Powell's testimony, where indications of rate cuts may emerge, Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, said, adding that the focus is also shifting back to trade tariff concerns. "Given the geopolitical uncertainty, the rupee is expected to trade in a wide range."
HDB Financial Services is set to launch India's biggest-ever initial public offering (IPO) in the non-bank finance company space on Wednesday, June 25, 2025. The IPO of HBD Financial is likely to attract inflows and could push the dollar-rupee below 86.00 levels, Bhansali said.