Overview

• The rupee closed June at 85.75 per dollar, marking its second consecutive monthly decline after shedding 0.2%.
• Foreign institutional investors withdrew more than $1.8 billion from Indian equity and debt markets during June, weighing on the currency.
• Early-day gains to 85.44 per dollar reversed as profit-taking intensified, reflecting persistent dollar strength and tariff uncertainties.
• Fed rate-cut bets have surged, with the CME FedWatch tool indicating a 92.4% chance of a September cut, boosting dollar demand.
• Brent crude prices have eased below $67 per barrel on expectations of increased OPEC+ supply and the Iran-Israel ceasefire, providing only limited relief to the rupee.