Mumbai, Apr 7 (PTI) The rupee depreciated 16 paise to close at 93.06 against the US dollar on Tuesday, as investors remained on edge ahead of US President Donald Trump's deadline for the opening of the Strait of Hormuz and the Reserve Bank's monetary policy review.

Forex traders said the USD/INR pair is trading under pressure, dragged down by unabated withdrawal of foreign capital, a firm dollar, and higher crude oil prices amid a volatile geopolitical situation.

Moreover, market participants will remain watchful of evolving geopolitical headlines and the upcoming RBI monetary policy decision.

At the interbank foreign exchange market, the rupee opened at 93.05 against the US dollar and touched an intra-day low of 93.12. During the day, the rupee also touched an intraday high of 92.86 against the greenback.

At the end of Tuesday's trading session, the rupee was quoted at 93.06, down 16 paise from its previous close.

On Monday, the rupee gained 28 paise to close at 92.90 against the US dollar on Monday, following the Reserve Bank's measures to curb speculative fervour and dampen volatility in the Indian currency.

The RBI has tightened its rules to curb speculative positions and capped banks' net open positions at USD 100 million.

Meanwhile, the Reserve Bank's rate-setting panel on Monday started its three-day brainstorming session on the first bi-monthly monetary policy of the fiscal year. The decision of the six-member Monetary Policy Committee (MPC), headed by Reserve Bank Governor Sanjay Malhotra, will be announced on Wednesday.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was down 0.15 per cent at 99.83.

Brent crude, the global oil benchmark, was trading lower by 1.97 per cent at USD 107.61 per barrel in futures trade.

On the domestic equity market front, Sensex jumped 509.73 points to settle at 74,616.58, while the Nifty climbed 155.40 points to 23,123.65.

Foreign Institutional Investors offloaded equities worth Rs 8,692.11 crore on Tuesday, according to exchange data.

Meanwhile, US President Donald Trump's deadline for the opening of the Strait of Hormuz expires today, with Iran still not relenting on the ceasefire proposal.

According to Dilip Parmar, Senior Research Analyst, HDFC Securities, the market is now in a "wait-and-watch" mode ahead of the RBI policy announcement and President Trump's Tuesday night deal deadline.

"Technically, USD-INR spot maintains a range with immediate support at 92.50 and resistance pegged at 93.60," Parmar said. PTI DRR HVA

Rupee volatility eases as dollar pressure, capital outflows and RBI policy caution keep the market on edge. The rupee weakened against the US dollar amid foreign capital outflows, a firm dollar, higher crude oil prices, and geopolitical uncertainty. Market participants remained cautious ahead of the Reserve Bank's monetary policy review and the expiry of a geopolitical deadline affecting the Strait of Hormuz. The market also reflected the Reserve Bank's recent steps to curb speculative positions and limit banks' net open positions to reduce volatility in the domestic currency.