The Indian rupee weakened 8 paise to 95.38 against the US dollar in early trade on Tuesday, weighed down by continued uncertainty over the West Asia crisis, which kept global markets cautious and pushed crude oil prices higher overnight.
The decline in domestic equities also exerted pressure on the local currency. However, fresh FII inflows and likely intervention by the Reserve Bank of India (RBI) helped limit the rupee’s losses, forex traders said.
At the interbank foreign exchange market, the rupee opened at 95.38 against the US dollar and remained at the same level at the time of reporting.