Mumbai

Therupee settled on a flat note on Tuesday, just a tad over the psychologically important 96 per dollar level, driven by possible RBI intervention and a pull-back in oil prices following hopes of negotiations between the US and Iran.

Forex traders said gains in the rupee were capped by US dollar demand from local importers and a stronger greenback. Additionally, the Reserve Bank of India (RBI) is likely to intervene as the rupee approaches the 96 level against the American currency, they said.

At the interbank foreign exchange market, the rupee opened at 96.03, then lost ground and touched an intraday low of 96.15 against the American currency. At the end of Tuesday’s trading session, the domestic unit was quoted at 95.95 (provisional) against the greenback, higher by 2 paise over its previous close.

On Monday, the rupee breached the 96 level for the second time in two weeks before settling 22 paise lower at 95.97 against the US dollar. “We expect the rupee to trade with a negative bias on risk aversion in global markets and concerns over elevated crude oil prices. A strong dollar and surge in US Treasury yields may also pressurise the rupee.

“However, hopes that US and Iran officials are expected to talk through mediators may support the rupee at lower levels. Any positive outcome may improve global sentiments and may see a fall in crude oil prices. Traders may take cues from JOLTS job openings and consumer confidence data from the US,” said Anuj Choudhary, Research Analyst, Mirae Asset Sharekhan.