Rupee plummets 56 paise to 86.08 against U.S. dollar in early trade

Rupee falls to 86.08 against dollar due to global oil prices, Middle East tensions, and FII outflows.

Rupee declined 56 paise to 86.08 against the U.S. dollar in early trade on Friday (June 13, 2025) due to a spike in global oil prices and a firm dollar amid rising tensions in the Middle East following a fresh Israel attack on Iran’s nuclear sites.

A weak opening in domestic equity markets and heavy FII outflows further contributed to the fall in the local unit, forex traders said.

At the interbank foreign exchange, the local unit opened at 86.25 against the greenback before inching up to 86.08, down 56 paise from its previous close. The rupee had settled at 85.52 on Thursday (June 12, 2025).

“The rupee opened weak as hostility in the Middle East kept tensions boiling and risk appetite taking a hit with Gift Nifty down 285 points,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.

“As Israel struck Iran, explosions were heard in Tehran with tensions mounting over U.S. efforts to win Iran’s agreement to halt production of material for Nuclear bombs,” he added.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.31% to 98.22.

Meanwhile, at least 265 people were killed on Thursday (June 12, 2025) when a London-bound Air India plane carrying 242 passengers and crew crashed into a medical college complex in Ahmedabad less than a minute after take-off. The dead in the country’s worst air disaster in recent times included several people on the ground.