The rupee slipped 23 paise to 85.84 against the US dollar in early trade on Tuesday, primarily driven by month-end demand for the American currency from importers.
According to forex dealers, the decline was partially offset by positive domestic equities and foreign fund inflows, which provided some support to the rupee at lower levels.
However, challenges such as liquidity constraints and concerns over reciprocal tariff implementations continue to weigh on the local currency.