Rupee Slips Amid Crude Rally, Geopolitical Tensions Weigh

The Indian Rupee weakened by 11 paise to 96.36 against the US dollar in early trade on Wednesday, pressured by rising global crude oil prices and geopolitical tensions.

Rising Brent crude prices following renewed tensions involving the US and Iran have raised concerns over potential supply disruptions. As India imports a significant portion of its crude oil requirements, higher energy prices are expected to widen the country's import bill and weigh on the domestic currency.

The strengthening US dollar and cautious investor sentiment have also added pressure on the rupee, with traders increasing exposure to safe-haven assets amid volatile global markets. State-run banks were seen selling the US currency, indicating possible intervention to prevent excessive volatility in the foreign exchange market.