Mumbai, Jul 14 (PTI) The rupee depreciated 62 paise to close at 96.30 (provisional) against the US dollar on Tuesday, amid a surge in crude oil prices and renewed geopolitical concerns.

Forex traders said the rupee came under pressure due to a combination of factors -- crude oil prices climbed on renewed geopolitical tensions, while demand for the US dollar increased as investors moved toward safe-haven assets.

At the interbank foreign exchange market, the rupee opened at 95.95 and settled for the day at 96.30 (provisional), down 62 paise from its previous closing.

On Monday, the rupee depreciated 30 paise to close at 95.68 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 101.07, down 0.16 per cent.

"When uncertainty rises, and interest rates are expected to stay higher for longer, the dollar often becomes the market's preferred shelter, putting pressure on emerging market currencies like the rupee," CR Forex Advisors MD Amit Pabari said.

Brent crude, the global oil benchmark, was trading higher by 3.75 per cent at USD 86.42 per barrel in futures trade amid concerns over disruptions to supplies through the Strait of Hormuz.

An expensive crude oil import bill widens the trade gap because India, which imports over 85 per cent of its crude, must purchase it in US dollars, driving a massive foreign exchange outflow. This surge in dollar demand weakens the domestic currency against the US dollar, traders said.

On the domestic equity market front, Sensex tanked 561.46 points to settle at 77,054.94, while the Nifty dropped 158.95 points to 24,052.05.

Foreign Institutional Investors on Monday offloaded equities worth Rs 3,062.27 crore in the domestic equity market, according to exchange data.

Meanwhile, India's exports rose 15.5 per cent year-on-year to USD 40.41 billion in June, while the trade deficit widened to a five-month high of USD 30.43 billion due to a surge in imports, driven mainly by higher crude oil prices.

On the domestic macroeconomic front, wholesale price inflation shot up to 9.87 per cent in June, from 9.68 per cent in May, led by a sharp spike in prices of food and non-food items.

Net direct tax collection grew 16.40 per cent to over Rs 6.51 lakh crore till July 13 this fiscal, driven by higher corporate tax mop-up, government data showed on Tuesday. PTI DRR HVA

Rupee depreciation reflects crude oil pressures, geopolitical uncertainty, safe-haven dollar demand, widening trade deficit, and rising inflation The rupee depreciated against the US dollar amid higher crude oil prices, renewed geopolitical concerns and increased demand for safe-haven dollar assets. Rising crude prices increased India's dollar-denominated import burden and contributed to foreign exchange outflows and pressure on the domestic currency. India's exports increased year-on-year in June, but the trade deficit widened as imports, particularly crude oil imports, rose. Wholesale price inflation also increased, while net direct tax collections recorded year-on-year growth, primarily reflecting higher corporate tax collections.