CHENNAI: During the week of June 21 to June 28, the Indian rupee displayed a moderate yet notable strengthening trend against the US dollar. The rupee began the week on a weaker note, trading around Rs. 86.60 per dollar on June 21 and 22. This initial softness reflected lingering pressure from high global oil prices and a relatively strong US dollar, which had kept import costs elevated and weighed on emerging market currencies like the rupee.
However, by June 23, the rupee showed early signs of recovery as it appreciated slightly to around Rs. 86.35. This turnaround gained momentum mid-week as global crude oil prices declined sharply — Brent crude fell by nearly $4 a barrel, providing relief to India’s import-heavy economy. Lower energy costs helped ease the current account burden, which in turn supported the rupee.
The upward movement continued over the next few days. By June 24 and 25, the rupee was hovering near Rs. 86.07, and by June 26, it had strengthened further to approximately Rs. 85.67. This steady appreciation reflected not only the favorable shift in oil prices but also an improvement in global investor sentiment. Geopolitical tensions in West Asia, which had previously created headwinds for emerging markets, began to calm, boosting market confidence.
By the end of the week, on June 27 and 28, the rupee had reached its strongest levels of the week, trading around Rs. 85.50 to Rs. 85.60 per dollar. This marked an overall gain of nearly 1.1% compared to the start of the week — a reversal of nearly 75 paise from the week’s high of Rs. 86.60. It was also the rupee’s best weekly performance in a month, underpinned by a mix of global relief and improving risk appetite.
While the short-term trajectory was encouraging, analysts remained watchful of upcoming risks, particularly any reversal in oil price trends, fluctuations in foreign investment flows, and signals from the US Federal Reserve regarding interest rates. Nonetheless, the week concluded with the rupee showing resilience and recovering ground after a period of weakness.