India, Sept. 16 -- The rupee depreciated 38 paise to close at 95.92 (provisional) against the US dollar on Tuesday, weighed down by escalating Middle East conflict and soaring Brent crude oil prices, which hit $108 per barrel.

Forex traders said surging dollar demand from oil importers has sparked fresh concerns over inflation and India's external trade balance. Moreover, weak domestic markets, a strong US dollar and worries over rising global treasury yields further dented investor sentiment.

At the interbank foreign exchange market, the rupee opened at 95.84 against the US dollar, then lost ground and closed at 95.92 (provisional) against the American currency, down 38 paise from its previous close.

On Friday, the rupee had settled a...