Indian rupee weakens to 95.74 against dollar in early trading

The rupee opened at 95.74 against the US dollar at the interbank foreign exchange market on Tuesday, marking a decline of 4 paise from Monday's close of 95.70. The currency remained confined to a narrow trading band as multiple headwinds weighed on sentiment, though central bank support restricted sharper losses.

Elevated international crude oil prices and steady dollar purchases by importers formed the primary bearish factors for the rupee during morning trade. These pressures were compounded by weakness in broader Asian equity markets and fresh geopolitical tensions surrounding Iran, which bolstered the appeal of the safe-haven US dollar.

Reserve Bank intervention via state-run banking channels proved instrumental in stabilising the rupee, preventing a steeper depreciation despite external headwinds. Forex traders noted the central bank's continued support has maintained the currency within a defined range, resisting broader volatility in regional currency markets.

According to market analysts, the rupee is expected to remain range-bound between 95.50 and 96.00 in the near term, with oil price movements and RBI intervention likely to dictate directional momentum. The currency has demonstrated resilience within this established band over the past fortnight, supported by coordinated central bank management and dollar purchases by domestic oil firms seeking to hedge international exposure.