Rupee nudges higher to 95.64 as sanctions on Iran and oil prices loom

The rupee began the week on an upward trajectory, climbing seven paise to settle at 95.64 per U.S. dollar in early interbank trading, after opening at 95.68. This modest rise followed a Friday close of 95.71, reflecting a three-paise gain. Forex dealers said a weaker Dollar Index, which stood at 98.82, supported the move, but the benefit was offset by elevated Brent crude prices and ongoing demand for dollars by Indian importers.

Investors are also monitoring expected U.S. sanctions aimed at Iran's oil trade, banking network and shipping routes, which keep currency and oil markets on edge. Brent crude slipped 1.32% to $93.14 a barrel, while Indian equity markets opened in positive territory, with the BSE Sensex up 202.42 points to 77,744.15 and the NSE Nifty rising 55.35 points to 24,309. Foreign institutional investors sold equities worth Rs 542.71 crore on Friday. Meanwhile, the Reserve Bank of India reported that foreign-exchange reserves grew by $9.905 billion to $716.907 billion for the week ending August 14.