Indian rupee opened 8 paise down on June 16 as the conflict between Israel and Iran continues. The domestic currency opened at 86.1175 against the US dollar, as compared to 86.0912 against the greenback. Israel started attacks on Iran on Friday, targeting nuclear facilities and missile factories and killing military leaders.

Oil prices edged lower on Thursday, as traders assessed whether the previous day's jump to the highest prices in more than two months had adequately priced in risks for crude oil supply from mounting tensions in the Middle East.

Analysts said OPEC might not see any urgency to shift policy, as the surge in prices was driven by a rising risk premium rather than changing market fundamentals.