Falling gobal crude oil prices and weaker US dollar lifted rupee higher in early trade on Monday. The currency traded at a gain of 31 paise against US dollar, while drawing support from foreign fund inflows, higher forex reserves and continued intervention by the Reserve Bank of India (RBI), according to forex traders.Rupee opened at 95.15 against the US dollar in the interbank foreign exchange market before strengthening further to 95.12, marking a gain of 31 paise over its previous close of 95.43. The rise comes after the currency ended Friday 7 paise stronger, extending its positive run for a fifth consecutive session.The improvement in sentiment followed developments in the Middle East after US President Donald Trump said he had decided against carrying out planned strikes on Iran.On Sunday, Trump said American forces had been prepared to launch what he described as “the biggest attack since World War II”. However, he said he chose to put the plan on hold after requests from Gulf allies Qatar, Saudi Arabia and the United Arab Emirates, as well as appeals from unnamed Iranian officials. He also said he had spoken with key Gulf leaders, including Saudi Crown Prince Mohammed bin Salman, before deciding to give diplomacy more time.The easing of geopolitical concerns was reflected in oil markets, with Brent crude falling 5% to $83.66 a barrel. The dollar index, which tracks the US currency against six major peers, was also lower by 0.17% at 99.74.Explaining the factors supporting the rupee, Anil Kumar Bhansali, head of treasury and executive director, Finrex Treasury Advisors LLP, said, “The rupee was supported by lower Brent crude oil prices, a weaker dollar, and sustained foreign portfolio inflows, and continued RBI presence in the foreign exchange market on Friday.”“As Brent oil prices fell to $84 per barrel after Trump delayed strikes on Iran, the rupee opened at 95.15 on Monday and is expected to trade in the range of 95.00-95.50,” he said.Apart from favourable global cues, domestic indicators also remained supportive. Foreign Institutional Investors (FIIs) purchased equities worth Rs 277.48 crore on a net basis on Friday, according to exchange data.The RBI’s latest data, released on Friday, showed that India’s foreign exchange reserves rose by $6.118 billion to $682.354 billion during the week ended July 24. In the previous reporting week, reserves had increased by $1.08 billion to $676.237 billion.Dalal Street also began the week on a firm footing. In early trade, Sensex climbed 470.06 points to 78,564.70, while Nifty gained 150 points to reach 24,532.95. Separately, data released by the Controller General of Accounts (CGA) showed that the Centre’s fiscal deficit stood at 18.2% of the full-year target at the end of June.