MUMBAI, Aug 11: The Indian rupee weakened by 8 paise to open at 95.38 against the US dollar on Tuesday, reflecting continued pressure on the domestic currency from external market factors.
The rupee had opened at 95.38 at the interbank foreign exchange market, compared with its previous close, as traders monitored movements in crude oil prices and developments in global markets.
Rising energy costs remain a concern for India because the country depends heavily on imported crude oil. Higher international oil prices can increase the import bill and put additional pressure on the currency.
Domestic equities also remained sensitive to global developments, with rising crude prices contributing to a cautious mood among investors.
Market participants are expected to track movements in the dollar, oil prices, foreign fund flows and geopolitical developments for further direction.
The currency market could remain volatile in the near term as investors assess the impact of global energy prices and broader risk sentiment on emerging-market currencies.