Rupee falls 2 paise to 94.97 against US dollar during early trade

The rupee traded in a narrow range and fell 2 paise to 94.97 against the US dollar in early trade on Wednesday, amid renewed US-Iran tensions, higher oil prices and rising Treasury yields. Forex traders said the RBI is keeping a tab on the rupee's fall as Brent crude prices have risen to USD 95 per barrel and dollar index is hovering around 99.70 on a bout of risk aversion on renewed US-Iran tensions. Moreover, market participants have raised the probability of a September Fed rate hike, pushing US Treasury yields higher and triggering a broad dollar rally. At the interbank foreign exchange market, the rupee opened at 94.97 against the US dollar, registering a fall of 2 paise from its previous close. On Tuesday, the rupee settled at 94.95 against the US dollar. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 99.75, higher by 0.08 per cent. The dollar continues to benefit from its safe-haven status, while the su