The Indian rupee posted a second consecutive month of decline against the US dollar in June, weathering through Middle East tensions, volatile crude oil prices, tariff uncertainties and foreign fund outflows.
The local currency shed 0.2% for the month, compared to 1.3% in May, according to Bloomberg.
On Monday, the unit depreciated by 26 paise to close at 85.75.
The rupee gained 1.3% last week, its best performance in two and a half years, as Iran and Israel held their ceasefire and the US engaged with trade partners on tariffs.
Despite investors turning sour on the greenback due to US tariff and fiscal policies along with fears over Federal Reserve’s independence, the rupee continues to lag behind its Asian peers.
While currencies like the Korean Won and offshore Chinese Yuan are up between 2% and 9% this year so far, the rupee is little changed, as per Reuters.
Foreign investors have pulled out over $1.8 billion from Indian equity and debt markets in June.
The US dollar index hovered near 97.2 on Monday, its lowest since February 2022, as a dovish Fed outlook, softening US economic data, and mounting fiscal concerns weighed on sentiment.
The Yen strengthened, the pound fell and the euro was unchanged.
Brent crude slipped to below $67 per barrel, extending losses from its sharpest weekly drop since March 2023, as Middle East risks eased and OPEC+ signaled increased output.
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