The Indian rupee weakened for the second straight session on Wednesday, closing 29 paise lower at 85.90 (provisional) against the US dollar. The decline was driven by risk-averse investor sentiment, foreign fund outflows, and lingering geopolitical tensions.Forex traders attributed the rupee’s fall to concerns over the Russia-Ukraine conflict, elevated crude oil prices, and caution ahead of the Reserve Bank of India’s (RBI) upcoming monetary policy decision.The RBI’s Monetary Policy Committee (MPC) began its three-day meeting on Wednesday, with the policy outcome expected on June 6. Analysts expect the central bank to continue its easing cycle, with a 25 basis point (bps) rate cut anticipated on Friday. SBI Research has predicted a larger, “jumbo” 50 bps reduction in the repo rate this month.At the interbank foreign exchange market, the rupee opened at 85.69, touched a high of 85.69, and fell to a low of 86.05 during intraday trade. It eventually closed at 85.90, marking a loss of 29 paise from its previous close of 85.61. On Tuesday, the rupee had already declined by 22 paise, bringing the two-day cumulative fall to 51 paise.Meanwhile, the US dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.12% at 99.11.Global crude prices also edged higher. Brent crude, the international benchmark, rose 0.41% to USD 65.90 per barrel in futures trade, further pressuring the rupee through concerns about India’s import bill.In equity markets, both benchmark indices ended higher. The BSE Sensex climbed 260.74 points, or 0.32%, to 80,998.25, while the Nifty 50 gained 77.70 points, or 0.32%, to 24,620.20.On the institutional side, Foreign Institutional Investors (FIIs) offloaded shares worth Rs 2,853.83 crore on a net basis on Tuesday, according to exchange data.Domestically, India’s services sector activity remained strong in May, supported by robust demand, new client acquisitions, and expanded hiring. The HSBC India Services PMI Business Activity Index stood at 58.8 in May, marginally up from 58.7 in April, reflecting continued sharp expansion.