Rupee rises 9 paise to 94.80 against US dollar during early trade

The rupee gained 9 paise to 94.80 against the US dollar in early trade on Monday, supported by the ongoing impact of the Reserve Bank of India's structural forex interventions.

Forex traders said the rupee has witnessed its sharpest rally in seven months.

However, the surge in Brent crude oil to USD 110 per barrel poses the biggest threat to this recovery.

The rupee is inching closer to a key support level near 94.

Constant pressure from high crude prices, rising US Treasury yields, and steady foreign capital outflows has forced the RBI to step up its market intervention, they said.

At the interbank foreign exchange market, the rupee opened at 94.90 then touched 94.80 against the American currency, registering a gain of 9 paise from its previous close.

On Friday, the rupee settled 10 paise higher at 94.89 against the US dollar.

"With USDINR holding below 95.00 for the last 3 sessions, the focus shifts to 94.8094.70.

A sustained break below 94.80 could open the way towards 94.00 ov