The rupee weakened by 17 paise to 86.72 against the US dollar in early trade on Monday, weighed down by a sharp rise in global crude oil prices following the US airstrikes on three nuclear facilities in Iran.
According to forex traders, the local currency also came under pressure due to a stronger dollar and subdued domestic equity markets. However, increased foreign institutional investor (FII) inflows and a rise in India's forex reserves helped limit the extent of the decline.