The rupee weakened by 9 paise to 85.96 against the US dollar in early trade on Thursday, pressured by sustained dollar demand from foreign investors, oil companies, and importers.
According to forex traders, market participants are closely watching the outcome of the Reserve Bank of India’s ongoing monetary policy meeting for further direction.
The RBI’s rate-setting committee began its three-day deliberation on Wednesday, with the policy outcome expected on June 6.