The rupee appreciated 6 paise to 85.44 against the U.S. dollar in early trade on Monday (June 30, 2025), supported by weakness of the American currency and easing crude oil prices amid rise in investor risk sentiments.

Forex traders said the U.S. dollar index weakened in the overseas market and was trading at 97 level, while Brent oil declined to $67 a barrel on prospects of more OPEC+ supply in August and easing risks in the Middle East.

Moreover, the ceasefire between Iran and Israel brought much-needed relief to oil markets, cooling crude prices and reducing global demand for the safe-haven U.S. dollar.

At the interbank foreign exchange, the domestic unit opened at 85.48 against the greenback. In initial trade, it witnessed a high of 85.44 against the American currency, registering a rise of 6 paise over its previous close.

On Friday, the rupee rose 22 paise to close at 85.50 against the greenback.

Forex traders said the trade tensions and aggressive geopolitical stance may trigger a classic risk-off response, lift the US dollar and weigh on sentiment in emerging markets.

“U.S. President Donald Trump reignited global uncertainty with a pair of high-stakes statements: the abrupt termination of trade talks with Canada and a renewed threat to bomb Iran. These announcements have once again unsettled risk sentiment,” CR Forex Advisors MD Amit Pabari said.

“While Trump’s remarks may stir short-term jitters, with all the uncertainty, USDINR may take support near 85.20–85.40 and bounce back towards 86 plus levels again,” Pabari said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.15 per cent to 97.25.

Brent crude, the global oil benchmark, went down 0.18% to $67.65 per barrel in futures trade.

Meanwhile, in the domestic equity market, Sensex declined 249.03 points or 0.30% to 83,809.87, while Nifty fell 66.90 points or 0.26% to 25,570.90.

Foreign institutional investors (FIIs) purchased equities worth ₹1,397.02 crore on a net basis on Friday, according to exchange data.

Meanwhile, India’s forex reserves dropped by $1.01 billion to $697.93 billion during the week ended June 20, the Reserve Bank of India said on Friday.

In the previous week, the reserves had jumped by $2.29 billion to $698.95 billion. Forex reserves had touched an all-time high of $704.885 billion in September 2024.