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Rupee declined 6 paise to 86.17 against the U.S. dollar in early trade on Monday (June 16, 2025) as global crude oil prices continued to surge amid escalating tensions in the Middle East.

A strong dollar against international currencies and FII outflows further pressured the rupee, while a positive opening at the domestic equity market and an increase in the country’s forex reserves prevented further losses, according to forex traders.

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At the interbank foreign exchange, the local unit opened at 86.16 before falling further to 86.17 against the greenback, down 6 paise from its previous close. The rupee had plummeted 59 paise to 86.11 against the U.S. dollar on Friday.

Brent crude, the global oil benchmark, rose 0.77% to $74.30 per barrel in futures trade as the Israel-Iran conflict escalated.

India’s forex reserves increased $5.17 billion to $696.65 billion for the week ended June 6, the Reserve Bank of India said on Friday.

In the domestic equity market, the 30-share BSE Sensex rose 288.79 points to 81,407.39 in early trade while Nifty was up 98.9 points to 24,817.50.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.15% to 98.33.

Foreign institutional investors (FIIs) offloaded equities worth ₹1,263.52 crore on a net basis on Friday, according to exchange data.