Rupee Appreciates by 4 Paise Amid Strong FCNR-Related Dollar Inflows

The Indian rupee traded on a narrow range and appreciated by 4 paise to 94.39 against the US dollar in early trade on Monday, supported by strong FCNR-related dollar inflows.

However, elevated crude oil prices amid persistent global headwinds negated this support, causing concerns over Middle Eastern energy supply disruptions.

According to Amit Pabari, MD of CR Forex Advisors, the rupee entered the week on a stronger footing due to heavy FCNR-related dollar inflows. However, he also warned that if global headwinds intensify, USDINR could move back towards 95.00, 95.50 and eventually 96.00.

The dollar index was trading at 99.18, higher by 0.01 per cent on safe-haven demand amid renewed US-Iran tensions.