07 September,2026 10:21 AM IST | Mumbai | PTI
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The rupee traded in a narrow range and appreciated 4 paise to 94.39 against the US dollar in early trade on Monday, as the support from strong FCNR-related dollar inflows was negated by elevated crude oil prices amid persistent global headwinds.
Forex traders said the rupee continues to draw strength from the robust liquidity wave, but renewed military strikes have driven Brent crude toward USD 97 per barrel, reigniting fears over Middle Eastern energy supply disruptions.
At the interbank foreign exchange market, the rupee opened at 94.40 against the US dollar, then touched 94.39, registering a gain of 4 paise from its previous close.
On Friday, the rupee settled higher by 8 paise at 94.43 against the US dollar.
"The rupee entered the week on a stronger footing, supported by heavy FCNR-related dollar inflows. However, the global backdrop remains a challenge. 94.00-94.20 remains the key support zone. If global headwinds intensify, USDINR could move back towards 95.00, 95.50 and eventually 96.00," CR Forex Advisors MD Amit Pabari said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 99.18, higher by 0.01 per cent on safe-haven demand amid renewed US-Iran tensions.
Brent crude, the global oil benchmark, was trading higher by 0.80 per cent at USD 97.05 per barrel in futures trade, amid escalating US-Iran tensions and fears of disruption to oil flows through the Strait of Hormuz.
Fresh strikes between both sides have pushed Brent crude closer to USD 97 per barrel, reviving concerns over energy supplies from the Middle East, Pabari said, adding that for India, higher oil prices rarely arrive alone. They usually bring along a larger import bill, stronger dollar demand and renewed pressure on the rupee.
On the domestic equities market front, Sensex dropped 172.77 points to 76,342.66 in early trade, while the Nifty declined 63.30 points to 23,832.60.
Foreign institutional investors (FIIs) offloaded equities worth Rs 3,111.94 crore on a net basis on Friday, according to exchange data.
India's forex reserves jumped USD 11.475 billion to a new all-time high of USD 740.803 billion during the week ended August 28, the RBI said on Friday.
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