Rupee sinks 23 paise to close at 86.78 against U.S. dollar-OxBig News Network

The rupee plunged 23 paise to close at a five-month low of 86.78 (provisional) against the U.S. dollar on Monday (June 23, 2025) amid a strengthening dollar and volatile crude oil prices following the U.S. strike on Iran’s nuclear facilities.

A sharp decline in the domestic equity markets further pressured the rupee, according to forex experts.

However, strong FII inflows, along with a rise in the country’s forex reserves prevented further losses in the rupee, they said.

At the interbank foreign exchange, the rupee opened at 86.75 against the greenback and traded in the range of 87.67 to 86.85 before settling at its five-month low of 86.78 (provisional), down 23 paise from its previous close of 86.55 on Friday (June 20, 2025).

The rupee had closed at 86.70 against the dollar on January 13.

“The rupee fell to 86.85 due to higher oil prices in the morning and then oil started to fall and gave importers an opportunity to buy dollars for their near-term imports. The rupee rose to 86.67 but was not able to rise any further as oil demand was quite high,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.

“The rupee went back to 85.82, where the Reserve Bank was a seller and kept the rupee movement on hold beyond today’s low,” he said.

Brent crude, the global oil benchmark, rose 0.08% to $77.07 per barrel in futures trade.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.60% higher at 99.29.

“The range of rupee is expected to be 86.50-86.90, depending on how oil prices behave,” Mr. Bhansali added.

In the domestic equity market, the 30-share BSE Sensex tanked 511.38 points to settle at 81,896.79 while Nifty dropped 140.50 points to 24,971.90.

Foreign institutional investors (FIIs) purchased equities worth ₹7,940.70 crore on a net basis on Friday (June 20, 2025), according to exchange data.

The latest weekly data released by the Reserve Bank of India on Friday (June 20, 2025) showed India’s forex reserves rising $2.294 billion to $698.95 billion during the week ended June 13.