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The Indian rupee was trading marginally lower against the US dollar in early trade on Monday, weighed down by elevated Brent crude prices following US-Iran strikes on vessels near the Strait of Hormuz, alongside expectations of a Federal Reserve interest rate hike in September after a stronger-than-expected August US nonfarm payrolls report. Foreign institutional investors (FIIs) offloaded equities worth Rs 3,111.94 crore on a net basis on Friday. However, strong FCNR-related dollar inflows, active RBI interventions, and expectations of continued dollar selling, limited further losses for the rupee. Market focus now turns to US August inflation data due this week, which could influence expectations for the Fed's upcoming policy decision. Meanwhile, RBI data showed India's forex reserves jumped $11.475 billion to a new all-time high of $740.803 billion during the week ended August 28.

 

The partially convertible currency is currently trading at 94.44, weaker by 1 paisa from its previous close of 94.43 on Friday. The currency touched a high and low of 94.4550 and 94.38 respectively.