The Indian rupee has depreciated seven paise to 94.58 against the US dollar in early trade on Tuesday, as month-end dollar demand and imports added pressure on the domestic currency.
Forex traders said the losses for the rupee were partly cushioned by relatively stable crude oil prices globally.
However, concerns about possible supply disruptions in the Gulf and lingering tensions around the Strait of Hormuz weighed on investor sentiment. At the interbank foreign exchange market, the rupee touched 94.58 against the US dollar, registering a loss of nearly 7 paise from the previous session.
The rupee had gained nearly 6 paise on Monday before settling down 6 paise at 94.51 against the dollar.
The US dollar, which gauges the greenback’s strength against a basket of six currencies, was also trading at 101.31, up 0.21 per cent.
Meanwhile, Brent crude, the global oil benchmark, was trading lower by 0.44 per cent at $72.83 per barrel in futures trade.
On the domestic macroeconomic front, industrial production expanded by 5.1 per cent in May, exceeding market expectations and improving from the previous month's reading.
As per the latest available IIP data, the Indian economy is showing continued resilience against the dollar despite the lingering tensions in West Asia.
Also read: Sensex climbs 200 pts, Nifty up 86 pts in early trade
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