The Indian rupee weakened by 16 paise to 93.32 against the US dollar in early Tuesday trade, pressured by a firm greenback and recent easing of restrictions on speculative positions by the Reserve Bank of India.
Despite the decline, support came from positive domestic equity markets and continued foreign fund inflows. However, lingering uncertainty around the West Asia peace situation kept investor sentiment cautious, according to forex traders.
On the policy front, the Reserve Bank partially rolled back measures introduced on April 1 to curb excessive speculation in the rupee. Earlier, banks were required to limit their net open positions in non-deliverable forward markets to USD 100 million, with compliance mandated by April 10.