Rupee Rises on Soft US Dollar, But Geopolitics Keep Gains in Check

The Indian rupee gained 7 paise to 95.64 against the US dollar in early trade on Monday, supported by a softer US dollar.

However, geopolitical tensions and elevated Brent crude prices kept the rupee's gains limited. Investors are cautious as Washington is set to unveil fresh sanctions on Iran targeting its oil trade, banking network, and shipping routes.

Forex traders pointed out that while the Dollar Index has weakened, Brent crude is trading lower by 1.32% at USD 93.14 per barrel in futures trade.

Amit Pabari of CR Forex Advisors said, 'The worry for markets isn't just Iran, it's who else gets caught in the crossfire.'