The Indian rupee depreciated 47 paise to close at 95.73 (provisional) against the US dollar on Tuesday, as geopolitical tensions in West Asia and rising crude oil prices weighed on investor sentiment.
According to forex traders, the rupee was also pressured by a strong US dollar and weakness in domestic equity markets.
At the interbank foreign exchange market, the rupee opened at 95.43 against the US dollar and moved within a range of 95.33 to 95.76 during the trading session before settling at its closing level of 95.73.
On the previous trading day, the rupee had gained 34 paise to close at 95.26 against the dollar, supported by Reserve Bank of India (RBI) intervention through dollar sales.
Market experts said the currency remains sensitive to fluctuations in global crude oil prices and developments in West Asia, particularly tensions involving Iran and broader regional instability.
Analysts expect the USD/INR pair to trade within a range of 95.20 to 95.85 in the near term, with continued volatility driven by global cues.
The dollar index, which measures the US currency against a basket of six major currencies, was slightly lower at 99.05, down 0.19 per cent.
Despite minor support from a softer dollar index, overall sentiment remained cautious due to uncertainty in global energy markets and concerns over potential supply disruptions.
