The Indian rupee weakened by 15 paise to close at 94.65 against the US dollar on Tuesday, marking a modest but notable step lower in the interbank foreign exchange market.
The currency opened the session at 94.60 before drifting lower throughout the day, settling at the provisional close of 94.65.
The depreciation was driven by a strengthening US dollar overseas and a broader shift toward risk-averse investor sentiment.
Forex traders indicated that the firmer greenback weighed heavily on emerging market currencies, including the rupee, as global investors reduced exposure to riskier assets.
The move reflects ongoing pressure on the local unit amid volatile external conditions.
This session's decline extends a recent downward trajectory for the rupee.