Rupee remains under pressure amid West Asia jitters; ends lower at 86.47/$

The Indian Rupee extended its decline on Wednesday as the conflict between Iran and Israel entered the sixth day, with traders watching out for any involvement by the US.
The domestic currency depreciated 23 paise to end at 86.47 against the dollar, the lowest level since April 9 this year, according to Bloomberg. During the session, the currency fell to the 85.56 level, before paring off some losses. Most Asian currencies were largely rangebound during the session on Wednesday.
Rupee traded weak as rising crude prices and a cautious foreign institutional investors (FII) stance amid ongoing West Asia geopolitical tensions weighed on sentiment, according to Jateen Trivedi, VP research analyst - commodity and currency at LKP Securities. "The currency is expected to remain volatile in the range of 85.75 to 86.85, with global risk factors and trade uncertainties exerting pressure."
After cutting short his visit to the Group of Seven summit in Canada on Tuesday, US President Donald Trump pushed Iran for an "unconditional surrender" in its fight with Israel. As missile exchanges continued for a fifth straight day, reports indicated that Israeli strikes had damaged Iran's underground uranium enrichment facility at Natanz.
The local unit has declined 1.03 per cent so far this month and 0.99 per cent in 2025, weighed down by a surge in crude oil prices. Crude oil prices pared off some gains after rising to near a five-month high after former US President Donald Trump warned Iran to surrender.
Brent crude price was down 1.07 per cent at $75.63 per barrel, while WTI crude prices were lower by 1.02 per cent at 74.08, as of 3:35 PM IST. Brent prices can touch $150 a barrel (bbl) — up a whopping 103 per cent from the current levels — in the worst-case scenario if the Israel–Iran geopolitical tensions escalate, suggest analysts. Read more
Meanwhile, the dollar index edged lower ahead of the US Federal Reserve's interest rate decision. The Fed is expected to keep rates on hold in June and July, according to a Bloomberg report. The index, which measures the greenback against a basket of six major currencies, was down 0.17 per cent at 98.65.
Meanwhile, RBI's chief Sanjay Malhotra said that if inflation is below the central bank's current projections, it could open up policy space. But he added that incoming data will be watched closely to strike "the right growth-inflation balance".

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