The Indian rupee weakened to 96.2375 per US dollar on Tuesday, marking its lowest level in over a month.
The slide was driven by a sharp escalation in crude oil prices following renewed military exchanges in the Middle East, which has intensified concerns about India's import bill and current account deficit.
Brent crude prices climbed sharply in the session, reflecting persistent shipping risks and supply disruption fears.
As the world's largest oil importer, India faces immediate pressure on its trade balance when energy costs rise, directly impacting the rupee's valuation against the dollar.
The currency had already slid to 95.62 per dollar on Monday, its weakest point in more than a month, before extending losses further on Tuesday.
The rapid depreciation highlights the vulnerability of emerging market currencies to geopolitical shocks in energy markets, particularly when global risk sentiment cools.