The Indian rupee weakened for the second consecutive session, losing 29 paise to settle at 85.90 against the US dollar on June 4, 2025. The currency came under pressure due to ongoing geopolitical tensions between Russia and Ukraine coupled with rising crude oil prices, factors that heightened risk-averse sentiments among investors.

Forex traders highlighted that uncertainty around the Reserve Bank of India’s (RBI) upcoming monetary policy announcements also contributed to the rupee’s depreciation. The RBI’s rate-setting panel began its three-day meeting on June 4, with the policy outcome scheduled for announcement on June 6.

Market experts anticipate the RBI to reduce the repo rate by 25 basis points in this policy review, with some forecasts, including from SBI Research, suggesting a possible “jumbo” rate cut of 50 basis points in June to support growth.

During the trading session, the rupee moved in a range between a high of 85.69 and a low of 86.05 per dollar. This marks a cumulative loss of 51 paise in two days, following a 22 paise fall on June 3.

Meanwhile, the dollar index, which tracks the strength of the US dollar against a basket of currencies, traded slightly lower by 0.12% at 99.11. Brent crude oil prices rose 0.41% to $65.90 per barrel, further pressuring the rupee given India’s oil import dependence.

In the domestic equity markets, the BSE Sensex rose by 260.74 points (0.32%) to close at 80,998.25, while the Nifty 50 index slipped 77.70 points (0.32%) to 24,620.20. Foreign institutional investors (FIIs) remained net sellers, offloading equities worth ₹2,853.83 crore on June 3, reflecting cautious investor sentiment.

On the economic front, the HSBC India Services PMI signalled ongoing resilience in the services sector with a reading of 58.8 for May 2025, marginally up from 58.7 in April, supported by strong demand, new client wins, and increased hiring.

The rupee’s trajectory in the coming days will largely depend on geopolitical developments, crude oil price movements, and the RBI’s monetary policy stance aimed at balancing inflation control with growth revival.

The Upcoming IPOs in this week and coming weeks are Jainik Power Cables, Sacheerome Limited, Victory Electric Vehicles International, Wagons Learning.

The Current active IPO are Ganga Bath Fittings.

The Closed IPOs are 3B Films.