Rupee edges lower against dollar amid mixed global cues

The Indian rupee opened slightly weaker at 94.36 against the US dollar on Monday (June 22), compared with Friday’s (June 19's) close of 94.32, as global markets tracked softer crude oil prices and easing geopolitical concerns in the West Asia.

Sentiment around the rupee improved after Iran indicated progress in peace negotiations with the United States, reducing fears of a prolonged disruption in oil supply routes. The development helped ease pressure on emerging market currencies, including the rupee, which had recently faced concerns of sustained depreciation.

Brent crude futures for August delivery declined 1.7% to $79.24 per barrel after Iran’s foreign ministry said talks held in Switzerland with US Vice President JD Vance had shown “good progress.”

Markets had earlier turned cautious after US President Donald Trump warned of possible fresh military action and Tehran signaled it could again move to shut the Strait of Hormuz, a key global oil transit route. Those concerns had briefly pushed Brent prices above the $82 mark.

Currency traders said lower oil prices and any further improvement in US-Iran relations could continue to support the rupee in the near term.

“Underlying sentiment has improved, though the move doesn’t point toward a sharp rally,” a treasury dealer at a private bank said. “Levels around 94 to the dollar are possible this week, but gains beyond that may be limited.”

Elsewhere in Asia, regional currencies traded mixed, while the dollar index remained largely flat below the 101 mark. US Treasury yields edged slightly higher but stayed below recent highs.

-With Reuters inputs