Rupee Trades Flat Ahead of Crucial US-Iran Talks

The Indian rupee traded on a flat note on Tuesday, rising just 2 paise to 95.95 against the US dollar. The rupee's gains were capped by strong demand for the greenback from local importers and a stronger currency overall.

Forex traders pointed out that the Reserve Bank of India (RBI) is likely to intervene in the market as the rupee approaches the psychologically important 96 level against the dollar. The RBI's intervention could help stabilize the rupee and prevent further depreciation.

Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, noted that hopes of negotiations between the US and Iran may support the rupee at lower levels. However, he also warned that a strong dollar and rising US Treasury yields could put pressure on the rupee. Additionally, concerns over elevated crude oil prices and risk aversion in global markets are likely to weigh on the rupee.