The rupee moved in a narrow range and declined by 5 paise to 87.63 against the US dollar, as depreciation pressures persisted amid ongoing trade uncertainty and a strong greenback.
According to forex traders, the rupee is holding within a tight band as the Reserve Bank of India appears to be defending the currency near the 87.95 level, while continued foreign fund outflows are weighing on the local unit.
At the interbank foreign exchange market, the rupee opened at 87.56 and slipped to an intra-day low of 87.63 in early trade, down 5 paise from its previous close.