The Indian rupee weakened to 96.42 against the US dollar in early trade on Tuesday, slipping 6 paise from the previous close.
The move reflects mounting pressure from higher crude oil prices and a broader shift toward safe-haven assets, which has bolstered the greenback across Asian markets.
This depreciation marks a continuation of the rupee's recent downward trajectory.
The currency had already opened lower on Wednesday, slipping 20 paise to 95.17, and closed at 94.65 on the prior Tuesday, down 15 paise. The current slide to 96.42 suggests that the headwinds from energy costs and global risk sentiment are intensifying rather than abating.
Rising oil prices are a persistent drag on the rupee, given India's heavy reliance on energy imports.
As Brent crude prices spike, the trade balance pressure mounts, forcing the central bank to manage volatility in the interbank foreign exchange market.