The Indian rupee continued to stay pressured around record low levels but witnessed some pullback on possible intervention by RBI to stabilize sharp volatility in the counter. INR opened at Rs 96.81 per dollar but recovered by 18 paise to close at 96.55 (provisional) against the US dollar on Friday. A combination of factors, including heightened tensions in West Asia, FII outflows, and sustained negative sentiments at the domestic equity markets, maintained pressure on the local unit. The S&P/BSE Sensex dropped 0.4% to 76,060 and the NSE Nifty 50 dropped 0.4% to 23,770, both at their lowest in over one month. The US launched a 13th straight day of strikes on Iran, with both sides ruling out near-term talks. President Trump also threatened major military punishment against Iran and the Houthis over any further attacks on Red Sea shipping and said he was considering a massive attack on Iran. His remarks followed attacks by Iran-backed Houthi militants on two Saudi oil tankers in the Red Sea, a key alternative export route for Saudi Arabia as fighting continued to disrupt traffic through the Strait of Hormuz. The higher energy costs lift petrol imports for India and pressure the rupee, reducing demand for Indian stocks in foreign markets.

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