Rupee began the week on a negative note, with market sentiment weighed down by a stronger dollar, rising crude oil prices and escalating geopolitical tensions.
On Monday, the domestic currency opened at 95.35 against the US dollar in the interbank foreign exchange market, slipping 17 paise from its previous close of 95.18.The decline comes after rupee posted its strongest single-day gain in nearly two months on Friday, when it appreciated 56 paise following the Reserve Bank's measures aimed at boosting foreign capital inflows and improving forex liquidity.
Meanwhile, the currency has remained under pressure since the Middle East crisis began, hitting multiple record lows, even breaching the 96 per US dollar mark.
Forex traders said that investors remained cautious due to tensions in the Middle East and strong US economic data.
At the same time, US economic figures also remain in focus which could provide clues about the US Federal Reserve's future interest rate decisions. window.addEventListener("message",function(a){if(void 0!==a.data["datawrapper-height"]){var e=document.querySelectorAll("iframe");for(var t in a.data["datawrapper-height"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data["datawrapper-height"][t]+"px";r.style.height=d}}});The dollar index, which measures the greenback against a basket of six major currencies, was trading 0.42% higher at 95.33.Crude oil prices also remained under focus, with Brent crude rising 3.43%to $96.28 per barrel in futures trade.
