Rupee Steady Despite Oil Surge, Geopolitical Tensions

The Indian rupee remained steady around 86.06 per US dollar as escalating Israel-Iran tensions led to higher crude oil prices, putting pressure on the currency due to India's reliance on energy imports. Likely Reserve Bank of India intervention, exporter dollar sales, and a softer US dollar index supported the rupee, which recovered from earlier losses. Improved domestic trade data, including a narrowed merchandise trade deficit in May, aided sentiment. Indian equities also rebounded, reflecting steady risk appetite despite geopolitical uncertainties. Analysts expect continued rupee volatility, with further Middle East escalation and US Federal Reserve policy decisions being closely watched. India's modest current account deficit, low inflation, and steady trade flows have so far cushioned the rupee from sharper swings.