Rupee falls 10 paise to 94.66 against US dollar as crude nears $98

Rupee remained under pressure in early trade on Tuesday, slipping 10 paise to 94.66 against the US dollar as rising crude prices and geopolitical tensions in the Middle East weighed on investor sentiment.The currency had opened at 94.49 against the dollar at the interbank foreign exchange market before moving down to 94.66. This followed a 13-paise decline on Monday, when rupee settled at 94.56.The pressure on the currency came as Brent crude climbed towards $97 a barrel. Brent, the global oil benchmark, was trading 0.63 per cent higher at $97.61 per barrel in futures trade amid escalating US-Iran tensions and concerns over possible disruption to oil flows through the Strait of Hormuz.Despite these pressures, forex traders said rupee continued to remain range-bound, helped by RBI dollar sales and strong foreign-currency inflows under special schemes."The RBI's intervention has been particularly important in preventing higher oil prices from translating into a weaker rupee," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.Bhansali expects rupee to trade between 94.00 and 94.75. He said crude was near the $97 level, while the dollar index had fallen to 98.74 and the RBI continued to sell dollars, keeping the rupee within the range.Markets are now awaiting US and India CPI data and the FOMC meeting on September 16 for further cues, Bhansali said.The dollar index, which measures the greenback against a basket of six currencies, was at 98.80, down 0.37 per cent.Domestic equities also opened lower with Sensex falling 382.25 points to 75,750.56, while the Nifty declined 97.80 points to 23,681.80. Foreign institutional investors were net buyers in the previous session, purchasing equities worth Rs 280.13 crore on Monday, according to exchange data.Get the latest Business News and Live updates. Download the TOI app.