India, July 15 -- The Indian rupee weakened by 16 paise to close at 96.32 against the US dollar on Wednesday, as escalating geopolitical tensions in the Middle East and rising crude oil prices dampened investor sentiment. During the day's trading, the domestic currency moved between 96.04 and 96.32 before settling at its lowest level of the session.

Market analysts said renewed concerns over the conflict in the Middle East have pushed global oil prices higher, increasing pressure on the rupee since India imports a significant portion of its crude oil requirements. The rise in energy prices has also fuelled concerns about inflation and the country's import bill, prompting cautious trading in the foreign exchange market.

Despite some supp...