The rupee weakened by 10 paise to 85.49 against the US dollar in early trade on Tuesday, pressured by a firming American currency against major global peers, rising crude oil prices, and continued foreign fund outflows.
According to forex traders, uncertainty in domestic equity markets ahead of the Reserve Bank of India's monetary policy decision also added to the pressure on the local unit.
The RBI's Monetary Policy Committee (MPC) is set to begin its bi-monthly policy deliberations on June 4, with the outcome expected on June 6.