Rupee Falls Amid Global Unrest: Impact of US-Iran Tensions

The Indian rupee slipped by 17 paise, settling at 86.72 against the US dollar during early trades on Monday. The fall came amid escalating global oil rates triggered by the United States' attack on Iranian nuclear facilities, which intensified global market volatility.

Despite this, the impact on the local currency was mitigated by robust foreign institutional investor inflows and a substantial increase in the nation's forex reserves. Brent crude saw a 2% rise, with prices reaching USD 77.27 per barrel, while the dollar index rose by 0.31% to 99.01.

In the domestic markets, both Sensex and Nifty recorded declines of 705.65 points and 182.85 points respectively. However, experts highlighted India's strategic oil sourcing from Russia and the US, which has cushioned to an extent against the adverse effects of Middle Eastern instability.

(With inputs from agencies.)