Rupee Set to Hold Above 96/USD as Persistent RBI Dollar Sales & Lower Crude Counter US Dollar Gains

The Indian rupee is expected to open flat to slightly higher on Tuesday, holding above the 96-per-dollar mark.

The Reserve Bank of India intervened with persistent dollar sales to defend the 97 level, triggering stop-losses on long-dollar positions.

Lower crude oil prices, with Brent crude down 1.5% at $87.06 per barrel, supported the rupee alongside RBI intervention.

The rupee rallied 0.7% on Monday to settle at 95.91 per U.S. dollar, its biggest single-day advance in six weeks.

The dollar index hovered near a one-month high, with the market pricing a one-in-three chance of a Fed rate hike at Wednesday's decision.