Rupee Faces Downturn Amidst Geopolitical Tensions and Market Uncertainties

The Indian rupee depreciated for the second consecutive session, closing at 85.90 against the US dollar. Factors include geopolitical tensions and high crude oil prices. Investors await the Reserve Bank's monetary policy announcements, with expectations of a potential rate cut to address economic concerns.

The Indian rupee continued its downward trajectory for the second straight session, ending Wednesday at 85.90 against the US dollar, a decline of 29 paise.

Forex traders attribute this dip to escalating geopolitical tensions between Russia and Ukraine, alongside strained market conditions due to elevated crude oil prices.

With foreign institutional investors offloading equities and the Reserve Bank poised for potential interest rate reductions, market sentiments remain cautious ahead of imminent policy announcements.