Rupee witnessed range-bound trading against the U.S. dollar in early trade today. This was influenced by a negative trend in domestic equities and the strength of the American currency in the overseas market. Forex traders said the safe-haven dollar gained ground amidst escalating tensions in the Middle East.

In the domestic equity market, the 30-share BSE Sensex plunged 407.19 points or 0.62 percent in early trade. The Nifty declined 142.70 points or 0.72 percent.

Meanwhile, India’s forex reserves dropped further by 3.794 billion dollars to 586.908 billion dollars.

Market analysts pointed out that investors preferred to remain on the sidelines and refrained from taking big risks as the Israel-Hamas conflict has commenced a huge uncertainty for the markets.