The rupee declined 7 paise to 95.40 against the US dollar in early trade on Thursday, weighed down by elevated crude oil prices and continued geopolitical tensions.
Forex traders said market sentiment remained cautious amid the prolonged standoff between the US and Iran. Concerns over the Strait of Hormuz added to uncertainty after Iran warned that the key shipping route could remain closed until 2029, while the US President said the strait was under American control.
At the interbank foreign exchange market, the rupee opened at 95.40, registering a decline of 7 paise from its previous close.