The Indian rupee depreciated by 8 paise to 90.98 against the US dollar in early trade on Tuesday, weighed down by strong dollar demand from metal importers and continued foreign fund outflows. Weak domestic equity markets and rising global uncertainty further pressured the local currency.
At the interbank foreign exchange market, the rupee opened at 90.91 and slipped to 90.98 against the greenback, compared to its previous close of 90.90. On Monday, the rupee had already weakened by 12 paise, ending close to its record low closing level. The currency had earlier touched its lowest intraday level of 91.14 on December 16, 2025, while its lowest closing level stood at 90.93.
Forex market participants said risk aversion remains elevated amid geopolitical uncertainty and global policy developments. Global markets are currently in a risk-off mode, with investors moving towards safe-haven assets such as gold and silver. The dollar index, which tracks the US currency against a basket of six major currencies, was trading 0.44% lower at 98.95. Meanwhile, Brent crude prices edged up 0.11% to USD 64.01 per barrel in futures trade.
On the equity front, domestic markets opened lower, with the Sensex declining 311.33 points to 82,934.85, while the Nifty slipped 99.5 points to 25,486. According to exchange data, foreign institutional investors sold equities worth Rs 3,262.82 crore on Monday.
