The Indian rupee weakened by 29 paise to 87.95 against the US dollar in early trade on Tuesday, edging closer to the key 88/USD mark, following fresh trade tensions triggered by US President Donald Trump's remarks.
Forex dealers noted that the rupee is likely to remain under pressure this week after Trump threatened to "substantially" raise tariffs on Indian goods, citing continued purchases of Russian oil by New Delhi and alleged resale at significant profits.
Traders remain cautious amid heightened geopolitical concerns and the potential impact on trade dynamics.