The Indian Rupee depreciated 11 paise to 94.95 against the US Dollar in early trade on Monday, weighed down by geopolitical tensions in West Asia and rising crude oil prices.
Forex traders said global uncertainty has kept markets on edge, with Brent Crude hovering near USD 108 per barrel, exerting pressure on oil-importing economies like India.
At the interbank foreign exchange market, the rupee opened weak and fell from its previous close of 94.84. Analysts also pointed to continued foreign capital outflows as a key factor denting investor sentiment.
According to market experts, mixed signals from the US over tensions with Iran, including proposals to secure shipping routes through the Strait of Hormuz, have left markets caught between uncertainty and cautious optimism.
Meanwhile, the dollar index rose marginally to 98.19, reflecting the strength of the greenback against major currencies.
On the domestic front, equity markets opened higher, with the BSE Sensex gaining over 650 points and the Nifty 50 rising more than 200 points in early trade.
Foreign Institutional Investors remained net sellers, offloading equities worth Rs 8,047.86 crore in the previous session, according to exchange data.
