The Indian rupee depreciated 20 paise to hit a fresh low at 95.43 against the US dollar in early trade on Tuesday, as market sentiment remained fragile following renewed military exchanges between the United States and Iranian forces in the Gulf region. 

Forex traders said heightened geopolitical tensions have triggered investor anxiety, prompting a shift towards safe-haven assets. The US dollar emerged as the primary beneficiary amid the uncertainty. 

Brent crude prices hovered near $113 per barrel

Adding to the pressure, Brent crude prices hovered near $113 per barrel, weighing on oil-importing economies such as India. 

At the interbank foreign exchange market, the rupee opened at 95.30 and weakened further to 95.43 against the greenback in initial trade, marking a decline of 20 paise from its previous close.

On Monday, the domestic currency had plunged 39 paise to settle at an all-time low of 95.23. 

Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading higher at 98.51, up 0.15%. 

Benchmark indices opened on a weak note

On the equities front, benchmark indices opened on a weak note amid mixed global cues. The 30-share BSE Sensex fell 578.44 points (0.75%) to 76,690.96 while the NSE Nifty 50 declined 181.20 points (0.75%) to 23,938.10 in early trade. 

Later in the session, the Nifty50 was down 0.34%, or 80 points, at 24,041.50 while the Sensex traded 0.27% lower, down 241 points at 77,026.90. 

In the broader market, the Nifty Midcap and Nifty SmallCap indices showed relative resilience, gaining 0.14% and 0.26%, respectively. 

Sectorwise, indices such as Auto, Bank, Financial Services, Metal, Pharma, PSU Bank, Realty, Consumer Durables, and Oil & Gas were trading in the red. In contrast, FMCG, IT, and Media stocks bucked the trend and traded higher.