The Indian rupee weakened by 14 paise to 86.57 against the US dollar in early trade on Thursday, as heightened safe-haven demand amid risk-off sentiment drove the dollar index higher.
According to forex traders, ongoing geopolitical tensions, cautious investor sentiment, and elevated crude oil prices have put pressure on the domestic currency. Additionally, strong dollar demand from oil importers further dampened market mood.
At the interbank foreign exchange market, the rupee opened at 86.54 against the US dollar, touching an early high of 86.49 and a low of 86.57 during initial trading hours.