The rupee depreciated 20 paise to 95.95 against the US dollar in early trade on Monday, PTI reported, as elevated crude oil prices and continued foreign fund outflows kept pressure on the local currency.

At the interbank foreign exchange market, the rupee opened at 95.89 and lost further ground to touch 95.95. On Friday, the currency had appreciated 24 paise to close at 95.75. Brent crude futures were trading about 2.3% higher at $106.81 a barrel, while the dollar index stood at 101.11.

Oil prices rose after US President Donald Trump rejected an Iranian proposal to resolve the conflict and reopen the Strait of Hormuz, raising fears of prolonged supply disruptions. The 10-year US Treasury yield also climbed to 5.2%, its highest in nearly two decades, adding to the dollar's strength.

The Reserve Bank of India has repeatedly stepped in as the rupee approaches 96 per dollar, preventing a sustained break above the level, Reuters reported. Currency strategists expect the rupee to stay in the 95.50 to 96.00 range while the central bank keeps defending it.