Rupee Opens 16 Paise Lower as Oil, Outflows Weigh

The Indian rupee became weaker against the US dollar on Tuesday.

It first opened at 96.03 rupees per dollar and then fell to 96.13.

This means more rupees were needed to buy one dollar.

Oil became more expensive, which can pressure India because it imports a lot of crude oil.

Higher US interest-related returns also encouraged investors to prefer US assets.

Foreign investors had sold many Indian shares, adding to pressure on the rupee.

Indian stock markets also fell in early trading.

One analyst said the rupee could weaken toward 96.50, but stronger Indian economic data might help limit the decline.