The Indian rupee slumped a further 30 paise on June 19, closing at ₹86.73 per U.S. dollar - its weakest in over two months - marking a third straight session of decline . A potent mix of factors weighed heavily: escalating geopolitical tensions in the Middle East, surging crude oil prices at around $76.8/barrel, and increased dollar demand from oil importers and corporates seeking to hedge.

Traders pointed to risk‑off sentiment in global markets and a bullish dollar index (~99 points) as additional headwinds. The U.S. Federal Reserve's decision to keep interest rates steady added to safe‑haven demand, while uncertainty around trade tariffs and elevated inflation risks lingered .

Interbank rates hit an intra‑day low of ₹86.89 and a high of ₹86.49, reflecting volatility tied to external pressures. Analysts warn the rupee may slide further into the ₹86.70–87.20 zone if geopolitical unrest and oil price spikes persist. With India reliant on oil imports, any prolonged Middle Eastern flare‑ups could drive additional rupee depreciation and stress trade dynamics.