Mumbai, Maharashtra, India

Indian Rupee sunk to 72.96 falling 33 paisa in early trade on Tuesday.

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Also Read: India's struggle to defend rupee shifts focus to rate hikes

The Indian currency had closed at 72.63, down 43 paisa on Monday ahead of impending US sanctions on Iran. 

The slide this morning was mainly due to rising crude prices which touched $81.39 per barrel and is expected to touch $100 according to analysts. On Monday, the petrol price in Mumbai had surpassed the Rs 90-run mark as it was being retailed at Rs 90.22 per litre, while diesel was being sold at Rs 78.69 per litre.

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India's pricing mechanism, the domestic fuel prices depend upon the international fuel prices on a 15-day average and the value of the Indian rupee varies accordingly.

On Tuesday, petrol prices were hiked 14 paise whereas diesel rose by 10 paise. Department of Economic Affairs Secretary Subhash Chandra Garg had said earlier that discussions are taking place with the United States regarding the reduction of oil imports from Iran.

US President Trump is set to sanction Iran from exporting oil which has triggered global anxiety across the world market. 

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Trump has demanded that the Organization of the Petroleum Exporting Countries (OPEC), and Russia increase their supplies to make up for the expected fall in Iranian exports, however, neither the petroleum cartel nor Russia has obliged so far.

Traders said besides sustained demand of the US currency from importers and dollar's strength against some currencies overseas ahead of US Federal Reserve's meet, a lower opening in the domestic equity markets too weighed on the domestic unit.

The benchmark BSE Sensex too fell 79.02 points, or 0.22 per cent, to 36,226.