Overview
- The rupee plunged about 50–60 paise on Thursday, June 11, to roughly 95.75–95.85 per US dollar as intensified US‑Iran strikes, a stronger dollar and heavy foreign‑institutional selling hit markets.
- Following US statements pointing to an imminent deal with Iran, Brent crude fell and the dollar weakened, helping the rupee recover about 65–67 paise to close near 95.18–95.20 on Friday, June 12.
- Domestic equities jumped on June 12, with large intraday gains in the Sensex and Nifty that supported the rupee’s rebound even as foreign investors remained net sellers.
- Market participants flagged likely past Reserve Bank of India intervention to curb volatility and say near‑term direction now depends on oil moves, dollar strength and any further RBI action.
- The episode highlights how geopolitical risk transmits through oil prices, dollar moves and capital flows to affect an oil‑importing economy like India and household living costs via fuel and import bills.