In early trading on Tuesday, the Indian rupee appreciated by 16 paise to reach 95.03 against the US dollar, reflecting India's robust domestic economic fundamentals despite prevailing geopolitical uncertainties. The rupee initially opened at 95.16 but quickly improved to 95.03. This follows a decline of 34 paise on Monday, where it closed at 95.19. Forex traders noted a risk-off sentiment influencing the USD/INR pair. Market attention is now on two significant upcoming events: the Reserve Bank of India's (RBI) policy decision on June 5 and ongoing trade negotiations between India and the United States, led by Assistant US Trade Representative Brendan Lynch. These discussions aim to finalize a trade agreement, with particular focus on tariff issues. Additionally, the dollar index was trading at 99.19, down 0.01%, while Brent crude oil prices decreased by 0.59% to $94.42 per barrel. On the domestic front, India's industrial production rose by 4.9% in April, alongside a 6.2% growth in manufacturing output, and the government successfully met its fiscal deficit target for FY26.