Momentum in the Indian rupee faded in opening trades on Wednesday as the counter traded in a narrow range and fell 2 paise to 94.97 against the US dollar, amid renewed US-Iran tensions, higher oil prices and rising Treasury yields. 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. Meanwhile, local shares were sharply lower in early trade on Wednesday as higher oil prices and elevated bond yields fueled concerns about inflation and Federal Reserve rate hikes. Brent crude futures extended gains for a third consecutive session to the highest level in nearly six weeks amid escalating fighting between the U.S. and Iran. BSE Sensex is trading at 76,455.50, down by 488.78 points (-0.64%), while the NSE Nifty 50 stands at 23,857.25, down .
