US-Iran War LIVE: India looks at RBI to stabilise the rupee as uncertainty over peace talks soars dollar, oil prices

Gold prices retreated by ₹600 to ₹1.64 lakh per 10 grams in the national capital on Friday as tentative progress in US-Iran negotiations reduced precious metals buying, though unresolved tensions around the Strait of Hormuz kept traders cautious.

The US and Iran have just a "50-50" chance of reaching an agreement that would free up the Strait of Hormuz, a senior UAE official said on Friday.

Presidential adviser Anwar Gargash urged Tehran not to overplay its hand in the stop-start negotiations during the Middle East war's fragile ceasefire.

Iranian officials "have missed a lot of chances over the years because there's a tendency to overestimate their cards", Gargash told the GLOBSEC Forum in Prague.

US Secretary of State Marco Rubio said Friday there was "slight progress" during talks with Iran amid uncertainty as to whether a deal will be reached or war will resume.

He spoke days after US President Donald Trump said he was holding off on a military strike on Iran because "serious negotiations" were underway. Trump has been threatening for weeks that the ceasefire reached in mid-April could end if Iran does not make a deal, with shifting parameters for striking such an agreement.

The United States has seen some progress towards a deal with Iran but more work is required, Secretary of State Marco Rubio said on Friday, as diplomatic efforts intensified to find an end to a conflict that has roiled the global economy, Reuters reported.

India's central bank said Friday it approved a record 2.86 trillion rupee ($29.9 billion) payout to the government to help bolster New Delhi's coffers at a time when public finances are strained due to high global oil prices. (AFP)

More than a million Muslims are gathering in Mecca for the hajj pilgrimage overshadowed by the Middle East war, as animosity smoulders across the region despite a fragile ceasefire, AFP reported.

This year's rites, drawing Muslim worshippers from across the world, including Iran, follow waves of Iranian attacks on targets in Saudi Arabia and its Gulf neighbours.

European Union officials said Friday that Europeans can expect oil and gas prices to remain above what they were before the Iran war for at least until the end of 2027, with prices of other goods also following an upward trajectory.

EU Economy Commissioner Valdis Dombrovskis said that higher energy prices are primarily responsible for driving inflation to a forecast 3.1% for this year and 2.4% for 2027. That’s significantly higher than the earlier forecast for this year of 1.9%. (AP)

Gold prices retreated by ₹600 to ₹1.64 lakh per 10 grams in the national capital on Friday as tentative progress in US-Iran negotiations reduced precious metals buying, though unresolved tensions around the Strait of Hormuz kept traders cautious.

Iran is quietly negotiating with the Gulf state of Oman over a plan to charge vessels for passing through the Strait of Hormuz, a move that puts Tehran on a direct collision course with US President Donald Trump even as both sides claim to be working toward a diplomatic resolution, according to a New York Times report.

Behind the public posturing of ceasefire declarations and diplomatic overtures, Iran and Oman have been holding discussions over something far more concrete: a system that would generate revenue from one of the busiest and most consequential shipping lanes on heart- Strait of Hormuz.

US Secretary of State Marco Rubio said Friday that President Donald Trump's "disappointment" with America's allies over a lack of support in the Iran war would need to be "addressed".

UAE official urges Iran not to 'overestimate their cards' in negotiations, AFP reported.

US Secretary of State Marco Rubio said Friday there was "slight progress" during talks with Iran amid uncertainty as to whether a deal will be reached or war will resume.

He spoke days after US President Donald Trump said he was holding off on a military strike on Iran because "serious negotiations" were underway. Trump has been threatening for weeks that the ceasefire reached in mid-April could end if Iran does not make a deal, with shifting parameters for striking such an agreement.

Higher inflation may erode the purchasing power of common citizens as the costs of food, transportation, and even education and medical care may rise. This could lead to cutting on luxury expenses such as eating out or holidaying.

Higher inflation may prompt monetary tightening, leading to higher interest rates on home and other loans. This could increase the EMI burden.

For investors, the situation is also bad, as higher inflation increases input costs, eroding companies' profitability and leading to modest market returns that may be further lower, adjusted for inflation.

As the Indian rupee quickly depreciates against the US dollar, Union Minister Piyush Goyal said the government is considering several steps to contain the widening Current Account Deficit (CAD).

"We are monitoring the situation. All the various arms of the government are working as a team. Several steps are under consideration. The situation globally is quite challenging but we have the confidence and courage of conviction that we will come out winners even in this challenging time," the commerce and industry minister told reporters in Delhi.

NATO Secretary General Mark Rutte welcomed an abrupt announcement by President Donald Trump to send an additional 5,000 troops to Poland even as the alliance’s top envoys braced for cuts in US military resources. (Bloomberg)

The US and Iran have just a "50-50" chance of reaching an agreement that would free up the Strait of Hormuz, a senior UAE official said on Friday.

Presidential adviser Anwar Gargash urged Tehran not to overplay its hand in the stop-start negotiations during the Middle East war's fragile ceasefire.

Iranian officials "have missed a lot of chances over the years because there's a tendency to overestimate their cards", Gargash told the GLOBSEC Forum in Prague.

The Reserve Bank of India's board has approved the transfer of 2.87 trillion rupees ($29.99 billion) as surplus to the federal government for the last fiscal year, it said in a statement on Friday.

The surplus transfer is same as last year's record 2.87 trillion rupees.(Reuters)

The rupee rose for the second consecutive session on Friday to close at 95.73 (provisional) against the US dollar on softening of crude oil prices and supposed intervention by the Reserve Bank.

The rupee rallied to close above the 96-per-dollar mark for the first time in a week on Friday, helped by RBI's aggressive interventions to arrest the currency's slide from 94.50 to nearly 97.

The rupee closed at 95.69 per dollar, up 0.5% from its close in the previous session.

RBI sold $2 billion to $3 billion on Thursday and intervened in the markets again on Friday, Reuters reported citing bankers.

Two state-run lenders were consistently selling dollars through Friday's trading session, three traders told Reuters, adding that this marked a change from relatively subdued and intermittent activity in the earlier part of the week.

The rupee had weakened from 94.50 on May 8 to a record low of 96.96 on May 20.

The Reserve Bank of India (RBI) sold $2 billion to $3 billion on Thursday to defend the rupee against relentless pressure and stepped in again on Friday, helping it strengthen past the 96-per-dollar level, news agency Reuters reported citing bankers.

The RBI intervened via large state-run banks before the market opened on Thursday, triggering a rally in the rupee, with dollar sales continuing through most of the day.

The rupee rose 0.64% to close at 96.20 on the back of that intervention and extended past the 96 level on Friday, when the RBI resumed dollar sales, the bankers said.

Around $500 million was sold pre-market on Thursday, two of them added, with limited market liquidity at the time amplifying the effectiveness of the intervention.

The intervention is a step up from recent days, when dollar sales averaged $1 billion.