On Tuesday, the Indian rupee depreciated by 35 paise, closing at an unprecedented low of 95.63 against the US dollar. This decline is attributed to escalating tensions between the United States and Iran, which have heightened risk aversion in global markets. The conflict, now in its 10th week, raises fears of further tightening in global supply chains, especially after US President Donald Trump's dismissal of Tehran's response to a peace proposal. Additionally, Prime Minister Narendra Modi's recent remarks on fuel conservation and reduced imports suggest a growing concern that India's trade deficit and balance-of-payments issues could worsen if crude oil prices remain high. In tandem, the Bombay Stock Exchange's Sensex fell sharply, losing 1,456.04 points (1.92%) to settle at 74,559.24, while the Nifty 50 index dropped 436.30 points (1.83%) to close at 23,379.55.