Rupee back below 86 per dollar, plunges by 48 paise in a day

MUMBAI: The rupee ended at 86.08 against the dollar on Wednesday, falling 48 paise from its previous close of 85.60. The local currency touched a low of 86.22 during the session, prompting RBI to intervene, according to traders.On Friday, the rupee posted its sharpest single-day fall since May 8, following Israeli strikes on Iran’s nuclear and military sites. The escalation dampened risk appetite and led to renewed pressure on the currency, with RBI again stepping in to contain losses.“The new geopolitical issue is unlikely to end soon and is weighing on the rupee. While yesterday the outlook was positive, the gap-down opening of 53 paise shows a negative undercurrent. Brent has already risen nearly 10%. If tensions persist, the rupee may breach 86.50, depending on RBI’s tolerance,” said KN Dey, a foreign exchange consultant.The Strait of Hormuz handles nearly 20.9 million barrels of oil daily (around 20% of global supply) with 83% headed to Asia.