The domestic currency slipped 10 paise to trade at 95.55 against the US dollar during early morning exchanges, weighed down by persistent foreign fund outflows and cautious market sentiment.

However, a softer greenback overseas and cooling global crude oil prices, which slid below the critical $90-per-barrel mark, provided crucial support and prevented a steeper plunge for the local unit.

Forex traders noted that while macroeconomic pressures linger, subdued commodity costs should continue to shield the currency from extreme volatility in the upcoming sessions.