Mumbai, Oct 28: The rupee depreciated 21 paise to 88.40 against the US dollar in early trade on Tuesday, weighed down by month-end dollar demand from importers and a surge in global crude oil prices.

Forex traders said investors are keeping a watch on Federal Reserve’s policy decision on Wednesday for further cues. Markets are assigning a 97.8 per cent probability to a 25-basis-point rate cut, with another one expected in December, they said.

At the interbank foreign exchange market, the rupee opened at 88.34, and slipped to 88.40 against the greenback, registering a fall of 21 paise from its previous close.

On Monday, the rupee plunged 36 paise to close at 88.19 against the US dollar.

“For now, the market seems to be balancing between short-term pressure and medium-term optimism. The

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