The rupee closed weaker against the US dollar on Tuesday, extending its losses from the previous session.
Investors are expected to remain cautious ahead of the Reserve Bank of India’s policy decision and they will continue to assess the impact of US tariffs.
Traders will also shift focus to the RBI Monetary Policy Committee meeting on Wednesday.
Sharp rupee volatility could dent earnings of several sectors by up to 250 basis points in the next financial year.