Rupee weakens for second straight session

Indian rupee continued its downtrend for the second straight day against the US dollar on Tuesday, due to strong demand for the American currency from importers.

Investors remain concerned with the Reserve Bank of India (RBI) Governor Shaktikanta Das’ statement that India's current account and fiscal deficit could take a hit if oil prices continue to rise after an attack on Saudi Arabian oil facilities over the weekend.

The domestic currency was also weighed down by a stronger dollar against some other currencies overseas along with sharp losses in the local equities. On the global front, dollar stood tall against other major currencies on Tuesday as geopolitical risks encouraged investors to flock to the relative safe-appeal of the greenback before Federal Reserve policy meeting this week, where a rate cut is widely expected.

Finally, the rupee ended at 71.78, 18 paise weaker from its previous close of 71.60 on Monday. The currency touched a high and low of 71.73 and 71.98 respectively.