The Indian rupee opened stronger at 94.30 against the US dollar on Thursday (June 25), gaining 35 paise from Wednesday's close of 94.65, as reported by Finrex. The currency rebounded after nearing the psychologically important 95/$ mark in the previous session, with traders attributing the strength to likely intervention by the Reserve Bank of India (RBI) to curb volatility. RBI Governor Sanjay Malhotra's comments also pulled down forward premium levels, helping sentiment and supporting the rupee's recovery. The currency's gains came despite continued weakness across Asian currencies, with regional peers remaining under pressure from strong safe-haven demand for the US dollar amid expectations that the Federal Reserve could keep interest rates elevated for longer. Finrex expects the rupee to trade in a narrow range during the session, with exporters having utilized recent opportunities to sell dollars over the past few days.
Brent crude dropped more than 4% overnight and slipped another 2% in Asian trading to around $72.28 per barrel, according to CNBC TV18. The fall came after tankers resumed movement through the Strait of Hormuz following an initial agreement aimed at ending the US-Israel conflict with Iran. Brent prices have now fallen below levels seen before the conflict escalated on February 28, with the benchmark down more than 10% this week and over 21% for the month. With crude oil hovering around $72.50 per barrel, the rupee remains in a comfortable position even as the Dollar Index trades at 101.56, as reported by Finrex. The steep decline in crude oil prices has significantly eased pressure on oil-importing economies such as India, with ING noting that recent price action suggests markets are now pricing in swift normalisation of shipping activity through the Strait of Hormuz. This development has been a key driver of the rupee's recent strength.
Asian currencies traded mixed against the US dollar on Thursday, with the Indonesian Rupiah emerging as the weakest performer, declining 0.52 percent, followed by the South Korean Won, which slipped 0.32 percent, according to Finrex. The Chinese Renminbi also remained under pressure, falling 0.27 percent, while the Taiwan Dollar was largely unchanged with a marginal loss of 0.04 percent. On the gaining side, the Malaysian Ringgit led regional advances with a 0.27 percent rise, followed by the Philippine Peso, which strengthened 0.12 percent. The Thai Baht gained 0.07 percent, while the Japanese Yen and Singapore Dollar edged up 0.03 percent and 0.02 percent, respectively. Importers may get a chance to purchase dollars near the 94.10–94.20 levels, where the RBI is also likely to be active in the market, as reported by Finrex.
Currency traders at banks said lower oil prices and the impact of RBI intervention are driving a decent uptick in the rupee at the open, as reported by CNBC TV18. The dollar index hovered near 101.50, close to multi-month highs, as investors bet that resilient US economic growth and sticky inflation may push the Fed toward tighter monetary policy. Market participants noted that Wednesday's recovery in the rupee, combined with easing crude prices, may help the local currency stabilise in the near term even as global dollar strength persists. The RBI's likely intervention to curb volatility, combined with Governor Malhotra's comments that pulled down forward premium levels, has provided crucial support to the rupee's recovery from recent pressure. A surging dollar has swept past chart resistance and is heading toward its sharpest monthly gain in almost a year on Thursday, as traders bet on a strong US economy propping up short-term interest rates and waited on key inflation data.
India's IT stocks have been severely impacted by artificial intelligence-related concerns, with the IT index falling 2% on June 23 after Jefferies and Morgan Stanley flagged soft demand signals for the sector. Tata Consultancy Services, Wipro, and Infosys led the decline by falling 2.91%, 2.81%, and 2.69% respectively, according to Moneycontrol. The weakness was triggered by IT bellwether Accenture's trimming of sales growth guidance for 2025-26 and management commentary of near-term pressure. India's IT stocks have slid about 29% so far this year, making them the worst-performing sector versus an 8.3% drop in the benchmark Nifty 50. The market is looking forward to the June quarter result of Tata Consultancy Services, which is scheduled for July 9.
