Indian rupee weakened against the U.S. dollar on Tuesday as tensions between Washington and Tehran have escalated ahead of the April 22 ceasefire deadline. US President Donald Trump has signalled that he is unlikely to extend the truce with Iran if no agreement is reached before the expiry of ceasefire. He further threatened to destroy Iran's power plants and bridges if the deal is not finalized. Besides, the Reserve Bank of India has eased some curbs on speculation in the rupee, which also weighed on the rupee. Under revised directives, authorised dealers or banks can resume offering non-deliverable derivative contracts involving INR to resident or non-resident users, but must comply with certain restrictions on related-party transactions. Also, the $100-million cap in net open position is still effective. On the global front, the euro has weakened against the dollar on Tuesday, to trade below $1.18, amid the European Central Bank’s cautious stance.

Finally, the rupee ended at 93.41 (Provisional), weakened by 25 paise from its previous close of 93.16 on Monday. The currency touched a high and low of 93.63 and 93.25 respectively.