The rupee traded weaker near 95.3 against the dollar, pressured by elevated crude prices and persistent foreign portfolio outflows, with RBI intervention offering only limited support. The dollar index (DXY) held firm around 104 as safe-haven demand remained strong amid Middle East tensions and cautious risk sentiment. The euro hovered near 1.1645, steady ahead of the ECB’s June policy meeting, with traders awaiting fresh inflation data to gauge the likelihood of a rate hike. Sterling edged higher to 1.3473, supported by resilient UK PMI figures, though growth concerns linger. The yen slipped further to 159.7 per dollar, reflecting ongoing weakness despite repeated signals of intervention from Tokyo, underscoring the challenges of stabilizing the currency in the face of rising U.S. yields.

Rupee opened lower at 95.06 levels, tracking rising crude oil prices following Iran’s decision to suspend talks with the US after Israel attacked Lebanon yesterday. Equity market benchmarks are trading about 0.5 in early trades.

DXY is trading higher at 99.20 level. The US dollar has benefited from this changing environment. Iran suspended its negotiations with the US on Israel-Lebanon tensions. The currency has strengthened on the back of both rising Treasury yields and renewed safe-haven demand. Geopolitical uncertainty associated with the Middle East conflict have moderated, the currency remains supported by the combination of economic resilience and a more hawkish interest-rate outlook.