Auto India

MUMBAI—The Indian rupee fell sharply against the U.S. dollar in early local trade Tuesday, as growing expectations of a U.S. military intervention in Syria spurred investors to seek safety in the dollar.

The rupee last changed hands at 65.22 to the U.S. dollar, down sharply from 64.30 late Monday in Asia.

Tuesday's fall brings the rupee close to its record low of 65.56 hit on Thursday.

The Reserve Bank of India likely sold dollars in the previous two sessions to halt the rupee's slide against the dollar, dealers said. The rupee has fallen more than 17% against the dollar since the start of May over fears that India will struggle to fund its wide current-account deficit if the U.S. Federal Reserve winds down its easy-money policy.

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