Rupee Trades Flat Ahead of RBI Policy Announcement

The Indian Rupee has traded flat at around 95.33 against the US Dollar in the opening session on Tuesday.

Investors are awaiting the Reserve Bank of India's (RBI) monetary policy announcement on Wednesday, which is expected to leave the benchmark repurchase rate unchanged at 5.25%.

This comes as analysts at Commerzbank note that inflation risks remain tilted to the upside due to higher global commodity prices and a weaker monsoon season.

The latest June CPI report showed inflation rose 4.4% YoY, which was within RBI's 2-6% target range.

Oil prices have risen amid US-Iran deal uncertainty, with the MCX Crude Oil contract expiring on August 19 trading 1.3% higher to near Rs. 7,745.