Rupee falls 9 paise to close at 94.54 against US dollar

The rupee pared initial gains and settled lower by 9 paise at 94.54 (provisional) against the US dollar on Monday, as renewed geopolitical tensions hit investors’ risk appetite. 
Forex traders said the rupee opened on a positive note with crude oil prices remaining supportive and foreign inflows improving, but a renewed flare-up in geopolitical tensions after fresh military exchanges between the US and Iran dented investor sentiment.

 At the interbank foreign exchange market, the rupee opened at 94.36, then gained momentum and touched an intraday high of 94.25 and a low of 94.56 against the American currency. At the end of Monday’s trade, the rupee was quoted at 94.54 (provisional), down by 9 paise over its previous close.

 On Thursday, the rupee settled at 94.45 against the US dollar. Indian stock, currency, and commodities markets were shut on Friday on account of Muharram.
 “We expect the rupee to trade with a negative bias on renewed geopolitical tensions . Overall strength in the US dollar on hawkish Fed may also pressurise the rupee. “However, a decline in crude oil prices and easing concerns over inflation may support the rupee at lower levels.