Rupee started the week on a strong note, rising 7 paise to 95.64 against the US dollar in early trading. However, the gains remained limited as geopolitical concerns, crude prices and steady importer demand weighed on the domestic currency.The currency’s movement was largely confined to a narrow range. It opened at 95.68 at the interbank foreign exchange before strengthening to 95.64. The currency had ended at 95.71 on Friday, marking a gain of 3 paise over its previous close.Forex traders said the weaker Dollar Index had helped rupee, but the impact was offset by elevated Brent crude prices and continued demand for dollars from importers.Market participants were also keeping a close watch on Washington’s expected fresh sanctions against Iran. The measures are set to target the country’s oil trade, banking network and shipping routes, adding to the caution in currency and oil markets.“The worry for markets isn’t just Iran, it’s who else gets caught in the crossfire, since several major economies continue to engage with Iranian trade in some form. Until the details are out this evening, oil and currency markets are likely to stay cautious,” CR Forex advisors MD Amit Pabari said.The dollar index, which tracks the US currency against a basket of six currencies, stood at 98.82, up 0.03 per cent.Brent crude, the global oil benchmark, was trading 1.32 per cent lower at $93.14 per barrel in futures trade.Equities also began the session in positive territory. BSE Sensex rose 202.42 points to 77,744.15, while NSE Nifty gained 55.35 points to trade at 24,309.Foreign institutional investors remained net sellers in the previous session, offloading equities worth Rs 542.71 crore on Friday, exchange data showed.India’s foreign exchange reserves, meanwhile, increased by $9.905 billion to $716.907 billion in the week ended August 14, according to data released by the Reserve Bank of India on Friday.
