The Indian rupee closed weaker for the second consecutive session against the US dollar on Tuesday, amid a rise in crude oil prices.
The local currency weakened by 4 paise to close at Rs 83.18 against the US dollar, according to Bloomberg data. The rupee closed at Rs 83.14 on Monday.
The US dollar index was lower at 104.46, while the Nymex Crude oil was trading higher by 1.56% at $78.93.
India's robust economic fundamentals and significant foreign exchange reserves, provide a solid buffer for the Reserve Bank of India to counter any downward pressure on the rupee, according to Amit Pabari, managing director, CR Forex Advisors.
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Historical trends suggest robust inflows following election results, with the rupee typically appreciating by around 1.85% in the first week after the results, Pabari said. "The rupee is expected to appreciate to around 82.80–82.50 in the near term, with medium-term projections ranging between 82.20 and 82.00."
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