The rupee declined by 28 paise to 94.77 against the US dollar in early trade on Thursday as investor sentiment turned cautious amid renewed geopolitical concerns and persistent foreign fund outflows.
Market mood shifted after reports suggested that the US and Iran are in talks over a 14-point Memorandum of Understanding (MoU) aimed at easing tensions and reviving negotiations. Meanwhile, Brent crude prices, which had earlier slipped to USD 98 per barrel on hopes of a peace agreement, rebounded slightly to around USD 101 per barrel as investors assessed the prospects of stability in the Middle East.