The rupee weakened by 8 paise to 84.38 against the US dollar in early trade on Tuesday, moving within a narrow range amid a stronger dollar index and a decline in Asian currencies. Market sentiment was weighed down by rising uncertainty and a cautious shift in risk appetite.
Forex traders noted that the USD/INR pair found some support from falling crude oil prices and continued foreign fund inflows. However, ongoing geopolitical tensions between India and Pakistan added pressure on the rupee.
At the interbank foreign exchange market, the rupee opened at 84.28, touched an early high of 84.26, and slipped to a low of 84.38, marking an 8-paise drop from its previous close.