Indian rupee opened sharply lower on Monday against the US dollar on risk aversion amid heightened geopolitical tensions in the Middle East.

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Rupee opened at Rs 72.01 per dollar against the previous close of Rs 71.80.

On Friday, rupee plunged by 42 paise to settle at a one-and-a-half-month low of 71.80 against the US currency due to a spike in crude oil prices after US President Donald Trump ordered strike on an Iranian commander.

Trump ordered the killing of Iran Revolutionary Guards commander Qasem Soleimani, escalating tensions in the strategic Gulf region.

Oil prices shot more than 2 percent higher on Monday, with Brent rising above $70 a barrel, after U.S. President Donald Trump issued a threat to impose sanctions on Iraq amid escalating tensions with Iran in the Middle East.

Brent crude futures soared to a high of $70.27 a barrel at 0222 GMT, up $1.67, or 2.4 percent, from Friday's settlement. U.S. West Texas Intermediate crude was at $64.39 a barrel, up $1.34, or 2.1 percent, after touching $64.44 earlier, the highest since April.

A gauge of Asian shares was toppled from an 18-month top on Monday as heightened Middle East tensions sent investors scurrying for the safety of gold, which hit a near seven-year high while oil jumped to four-month peaks.

Meanwhile, Finance Minister Nirmala Sitharaman on Sunday said the Centre has taken steps to address the challenges faced by various sectors without waiting for the Budget. She also said that GST collection, which crossed Rs 1 lakh crore per month mark during the last two months, will remain "good" in the coming days.

India's foreign exchange reserves swelled by $2.520 billion to touch a record high of $457.468 billion in the week to December 27, according to RBI data. In the previous week, the reserves rose to $454.948 billion after increasing by $456 million.

First Published:Jan 6, 2020 9:04 AM IST