Extending its losing streak for the fourth consecutive session, the rupee weakened by 30 paise to 86.56 against the US dollar in early trade on Wednesday, ahead of the Reserve Bank's monetary policy announcement.
According to forex traders, despite a sharp decline in crude oil prices and a weakened US dollar, fears of a global economic downturn triggered by escalating trade tensions continued to unsettle investors. This has led to persistent outflows of foreign funds, leaving stock markets in a state of uncertainty.
At the interbank foreign exchange market, the rupee opened at 86.52, dropped to a low of 86.60, and later settled slightly higher at 86.56 in early trading—still down by 30 paise from its previous close.