Mumbai: The rupee depreciated 12 paise to 87.95 against the US dollar in early trade on Monday, weighed down by rising crude oil prices supported by optimism over a potential US-China deal.

Forex traders said the rally in crude oil prices was driven by the potential US-China trade deal, which supports expectation for a stronger global oil demand.

At the interbank foreign exchange market, the rupee opened at 87.87, and slipped to 87.95 against the greenback, registering a fall of 12 paise from its previous close.

On Friday, the rupee appreciated 5 paise to close at 87.83 against the US dollar.

"For now, the rupee seems to be walking a tightrope between caution and hope. If it manages to break below 87.50, it could find room to appreciate toward 86.80–87 in the near term. On the other ha

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