On Tuesday, the Indian rupee weakened by 36 paise, closing at ₹93.49 per dollar, influenced by a partial rollback of regulatory measures by the Reserve Bank of India (RBI) that limited lenders' exposure to overseas currency derivatives. The rupee had previously closed at ₹93.13 per dollar on Monday. This regulatory change, announced after market hours on Monday, has led to increased caution among bank treasury heads, who are now hesitant to offer non-deliverable forward (NDF) contracts to corporate clients. Furthermore, uncertainty surrounding ongoing US-Iran negotiations has added to the rupee's downward pressure. As a result, dollar-rupee forward premiums have risen, with the 1-year forward yield increasing by 10 basis points to 3.10%, thereby raising hedging costs for businesses.