Rupee rises after three-day slide on likely FII inflows; ends at 86.59/$

The Indian Rupee ended higher on Friday, breaking a three-day losing streak, with US President Donald Trump taking two weeks to decide on potential action against Iran.
The domestic currency rose 14 paise to end at 86.59 against the dollar, after closing at 86.73 on Thursday, according to Bloomberg. The currency has fallen 1.17 per cent so far this month. During the session, most Asian currencies inched up, with the Korean won leading gains.
The uncertainty around the Iran-Israel conflict continues, with US President Trump delaying the country's response to Iran by two weeks, according to analysts.
The White House said Trump still considers negotiations with Iran an option and will decide on supporting Israel within two weeks, leaving investors uncertain. However, Israel said it destroyed nearly half of Iran's missile launchers, adding that its strikes create the conditions for the downfall of the Iranian government.
Meanwhile, potential inflows into equities also supported the currency's movement. Friday promises to be an action-packed day with two major semi-annual index rebalances lined up, the Sensex and the FTSE, Nuvama said in a note, anticipating large foreign inflows.
Foreign portfolio investors (FPIs) have bought equities worth ₹3308.32 crore over the past three days. Most of the selling pressure has been in the mid- and small-cap segments, while broader indices have remained stable despite geopolitical tensions, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. "Inflows are expected this week and next, especially with the upcoming HDB Financial Services IPO."
Rupee traded positively, supported by softer crude oil prices and a weaker dollar index, according to Jateen Trivedi, VP research analyst - commodity and currency at LKP Securities. Continued foreign and domestic inflows into Indian markets have helped limit the rupee's downside despite ongoing geopolitical tensions over the past few months, he said. "The rupee is expected to trade in a range of 86.00 to 86.85."

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Business Standard

10 minutes ago

• Business Standard

Iran-Israel conflict: Exporters urge shift from Bandar Abbas to Chabahar

Exporters have suggested shifting cargo movement from Bandar Abbas port to the Chabahar port in the wake of Iran-Israel conflict, stating any further escalation in the war would severely impact trade with Afghanistan, Central Asia, and Russia, an industry official said on Friday. The official also said that the air freight rates have already seen a 15 per cent rise, and traders expect both air and sea freight costs to increase further if the conflict escalates. This was suggested during a meeting convened by the commerce ministry on assessing impact of the war on India's trade. It was chaired by Commerce Secretary Sunil Barthwal. The official also said that while there has been no immediate impact on shipments to Iran, disruptions are likely if the situation worsens. "If Bandar Abbas port doesn't function, it will affect exports not only to Iran but to Afghanistan and Central Asia also. We have been informed that there is adequate capacity at Chabahar, and this needs to be explored urgently," the exporter said. The official, who attended the meeting, said that the secretary assured that the feasibility of shifting operations to Chabahar port would be examined. A Federation of Indian Export Organisations (FIEO) official said that they would soon hold a meeting with Chabahar port authorities on the issue of shifting the movement of consignments. "We will enquire about the facilities at the port," the official said, adding, "The shifting call will have to be taken by the shipping lines. DG shipping would look into that." If Strait of Hormuz gets impacted due to the war, "we have to look at Fujairah port in UAE and Oman port", the official said. FIEO flagged that as of now, Iran's Bandar Abbas port is operational and being used for cargo movement to Afghanistan and other CIS (Commonwealth of Independent States) countries, including Russia. However, if the conflict continues beyond Monday, the route may be impacted. "In case ship movement in the Persian Gulf is blocked, exports to Gulf and Mediterranean countries will also suffer. Currently, buyers have put orders on hold, and exporters are delaying shipments due to concerns that goods may get stuck at ports, leading to heavy demurrage," another industry official said. Although certain factors remain beyond control, in the current circumstances, focus on Chabahar Port -- an Indian-managed port in Iran -- could help the industry. There is connectivity via Dubai and direct linkage from Kandla Port. Due to the conflict, Basmati rice exports to Iran have reportedly stopped, and shipments to the Middle East have become expensive. An exporter said there is a need to improve Chabahar's connectivity to Uzbekistan by engaging local players who may otherwise lose business if Bandar Abbas operations are affected. As per the exporting community, freight has risen by USD 500-600 per 20-feet container. Ocean freight from Indian ports to EU and Mediterranean ports has surged by USD 1,000 per TEU (twenty-foot equivalent unit). The meeting was attended by senior officials from the petroleum, commerce, shipping, and financial services, revenue departments, along with representatives from shipping lines, cargo handlers, and airport authorities. While the Red Sea route remains unaffected and 90 per cent of Indian cargo currently moves via the Cape of Good Hope, concerns were raised about potential disruptions at the Strait of Hormuz. This narrow waterway, only 21 miles wide at its narrowest point, handles nearly a fifth of global oil trade and is indispensable to India, which depends on imports for over 80 per cent of its energy needs. Meanwhile, the exchange of strikes between Iran and Israel has entered the second week on Friday even as President Donald Trump weighed US military involvement and new diplomatic efforts appeared to be underway. At the same time, Iran's foreign minister is in Geneva for holding talks with his counterparts from France, Germany and the UK and the European Union's foreign policy chief. It is the first face-to-face meeting between Western and Iranian officials since the start of the conflict.

Business Standard

10 minutes ago

• Business Standard

'Grave war crimes': Iran slams Israeli attacks at UN Human Rights Council

Iran's Foreign Minister Abbas Araghchi on June 21 accused Israel of committing 'grave war crimes' by targeting the country's nuclear facilities, telling the United Nations Human Rights Council (UNHRC) that such attacks are 'absolutely banned under international law'. Speaking at the Council's session in Geneva, Araghchi described Israel's recent strikes on Iran as 'unprovoked aggression' and 'an unjust war' that began in the early hours of June 13. He said the operations had targeted off-duty military personnel, university professors, residential areas and hospitals, resulting in the deaths and injuries of hundreds of Iranians. 'Our peaceful nuclear facilities have also been targeted despite their being under full monitoring of the IAEA,' he said. 'Israel attacks on nuclear facilities are grave war crimes, given also the danger of environmental and health catastrophe as the result of radiological leakage.' He also criticised what he called a betrayal of diplomacy, noting that Iran had been engaged in talks with the United States aimed at reaching a peaceful agreement over its nuclear programme. 'We were attacked in the midst of an ongoing diplomatic process. We were supposed to meet with Americans on June 15 to craft a very promising agreement for peaceful resolution of the issues fabricated over our peaceful nuclear programme. It was a betrayal of diplomacy and an unprecedented blow to the foundation of international law and UN system,' he said. Calling on member states to act, Araghchi said, 'This is a historic moment for human civilisation… The world, every State, every UN mechanism and body, has to be alarmed and has to act now to stop the aggressor, to end impunity, and to hold the criminals accountable.' Israel condemns Iran being given floor at UNHRC Earlier in the day, Israel's Ambassador to the UN Danny Danon condemned the Council's decision to give Iran a platform to air its views. 'The fact that Minister Araghchi has been invited to address the UN Human Rights Council in Geneva tomorrow is even more shameful and demonstrates that this UN body has lost its sense of purpose and its moral compass,' Danon said, in a letter addressed to the president of the UN Security Council. 'It is shameful,' Danon wrote, referring to Araghchi's claim that Iran only targets military sites. 'Iranian Foreign Minister Abbas Araghchi lying and claiming to target military sites is a pathetic attempt to distract from what has clearly become a modus operandi for his regime: targeting civilians and wreaking havoc and destruction on the Israeli people.' Hostilities escalate The situation in West Asia worsened on June 21 as both Israel and Iran stepped up their attacks. Israel struck key nuclear infrastructure sites in Iran. In a significant retaliation, Iran launched missiles equipped with cluster munitions—marking the first confirmed use of such weapons in the current conflict. One of Iran's missiles struck an Israeli hospital on June 20, leaving many injured. In the wake of the hospital strike, Israeli Prime Minister Benjamin Netanyahu warned that Iran's leadership would bear a 'full price' for its actions. He said Israel's military operations were progressing faster than anticipated. 'We are moving faster than planned. Our goal is clear: to neutralise Iran's nuclear capabilities before it is too late,' Netanyahu said. Also on June 20, Israel's Defence Minister Israel Katz said that Iran's Supreme Leader Ayatollah Ali Khamenei 'can no longer be allowed to exist', pointing to what he said was the latter's stated intent to destroy Israel. US President Donald Trump, however, has been non-committal regarding America's role in the conflict. While US officials are reported to be preparing for a possible strike on Iran in the coming days, President Trump on June 19, when asked if he was moving closer to striking Iran's nuclear facilities, said: 'I may do it. I may not do it. I mean, nobody knows what I'm going to do.' While Israel has already hit Iran's nuclear facilities at Natanz, a much more fortified complex exists under a mountain in Fodrow. As of now, only the US is said to have a bomb large enough—the 30,000-pound, bunker-busting GBU-57—that can possibly penetrate the mountainside and the fortified structure at Fodrow.

First Post

12 minutes ago

• First Post

Iran losing ‘no war, no peace' bet as it battles to survive just 5 years after it hit US bases

Iran's decades-long 'no war, no peace' strategy collapses under pressure as Israel's military assault intensifies. Experts say Tehran now faces a war it cannot win, threatening the regime's survival and exposing flaws in its long-standing regional strategy. read more Five years after Iran's carefully calibrated missile strikes on American bases in response to the assassination of General Qassem Soleimani, Tehran now finds itself engulfed in the full-scale war it had long sought to avoid. Back in 2020, the Islamic Republic had launched one of its most significant attacks on US forces but importantly, it was choreographed to prevent escalation. Iran quietly relayed its intentions to Washington through indirect channels, ensuring there were no fatalities and allowing both sides to step back from the brink of open conflict. STORY CONTINUES BELOW THIS AD Iran's leadership, particularly Supreme Leader Ayatollah Ali Khamenei, had relied for decades on a strategy of calibrated aggression, projecting strength through threats, proxies and covert operations, without provoking a direct confrontation. But analysts say that strategic posture has now crumbled under the weight of miscalculation and hubris, as Iran enters a war it neither expected nor is equipped to win. 'Iran only has bad options now,' Ellie Geranmayeh of the European Council on Foreign Relations told the Financial Times. 'Khamenei stuck to this idea of 'no war, no peace' for too long. It's been untenable for years.' Since launching a surprise wave of strikes on Iran, Israel has claimed the upper hand—decimating missile sites, striking nuclear facilities, and killing key military figures while maintaining total air superiority. Iran continues to fire missiles at Israel, but its response has failed to shift the military balance. The shift came in the aftermath of the October 7, 2023 Hamas assault on Israel. Though Iran claimed no involvement, Israel viewed the attack—which killed 1,200 and took 250 hostages—as part of a broader Iranian-backed effort to destabilise the region. Israel responded by targeting Iran and its proxies with force and frequency never seen before. Analysts told the FT that Iran misread Israel's tolerance for risk and overestimated the strength of its regional alliance, the so-called 'axis of resistance.' While Hamas, Hizbollah, and the Houthis remain active, none have stepped in meaningfully as Iran comes under direct Israeli attack. Soleimani's once-vaunted regional network now appears overstretched and strategically fragmented. STORY CONTINUES BELOW THIS AD Meanwhile, Israel and Iran exchanged strikes a week into their war Friday, while new diplomatic efforts appeared to be underway as Iran's Foreign Minister Abbas Araghchi arrived in Switzerland for meetings with the European Union's top diplomat and counterparts from the United Kingdom, France and Germany. Speaking beforehand at the United Nations' top human rights forum in Geneva, Iran's top diplomat called Israel's strikes an 'unprovoked aggression.' Israel's military says 25 fighter jets carried out airstrikes Friday morning targeting 'missile storage and launch infrastructure components' in western Iran. Thousands of people protested in Iran's capital over the ongoing Israeli strikes, with one hard-line demonstrator telling The Associated Press: 'How can we compromise with an enemy that breaches deals?' A week of Israeli strikes on Iran have killed at least 657 people and wounded 2,037 others, the Washington-based group Human Rights Activists said Friday. With inputs from agencies