The rupee fell 12 paise to 96.42 against the US dollar in early trading on Monday, giving up the gains it had posted in the previous session. The move reflected fresh pressure on the domestic currency at the start of the week.
Market sentiment was weighed down by a jump in crude oil prices and stronger demand for the US dollar. The pressure on the rupee also came as concerns over the worsening West Asia crisis added to caution across currency markets.
The decline follows Friday’s recovery, when the rupee had risen 12 paise to close at 96.30 per dollar. That earlier advance had been supported by upbeat domestic market sentiment and easing US Treasury yields.
With global geopolitical risks back in focus, traders are likely to watch oil prices and demand for the greenback closely. The rupee’s near-term direction may remain tied to how these external pressures develop in the sessions ahead.
