Rupee down 55 paise, breaches 86-mark against dollar at the open as Israel strikes Iran

Indian-rupee-

The rupee breached the 86 mark against the dollar at the open on June 13 after Israel hit several sites in Iran, raising fears of a full-blown war with Tehran threatening “bitter” retaliation.

The currency opened 55 paise down at 86.15 against the dollar. It closed the previous session at 85.60.

Israel’s strikes on facilities linked to Iran’s nuclear programme and long-range missile capabilities led to a spike in oil prices and dollar index.

In the early morning trade, the benchmark Brent crude was up 9.01 percent, or $6.25, at $75.61 a barrel. The dollar index surged 98.201 after ending the previous session at 96.921 at previous close.

Israel launched Operation Rising Lion, a coordinated military campaign targeting what it describes as a threat to its “very survival” posed by Iran.

Iran’s paramilitary Revolutionary Guard commander Gen Hossein Salami was killed in one of the strikes, Iran’s state television said.

Israeli Prime Minister Benjamin Netanyahu said the airstrikes were aimed at key parts of Iran's nuclear and military program.

These strikes come at the time when the Trump administration is trying to make a deal with Iran to limit its nuclear activity. US secretary of state Marco Rubio made it clear the US was not involved. He also added that Israel acted on its own.

"For USD/INR, 85.40 acts as a base while 86.20 a resistance," Kunal Sodhani, head of treasury at Shinhan Bank India.