The Indian rupee closed flat against the U.S. dollar on Tuesday.
The local currency closed little changed at Rs 83.05 against the U.S. dollar, after opening at Rs 83.04, according to Bloomberg data. It closed at Rs 83.06 on Monday.
"Rupee which gained to Rs 82.82 last week fell but the fall was restricted by inflows keeping it near Rs 83.05 for the entire day. Don't think RBI will allow too much of appreciation when Asian currencies particularly Yuan are weak," Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP said. "The rupee is expected to be in a narrow range of Rs 82.90-83.15 as flows continue to keep dollar down, while RBI props it up."
"The US service sector continues to show robustness. The expectations of an early Fed interest rate cut fade, and this lifts the yields and dollar across the board. RBA is expected to keep rates unchanged," said Kunal Sodhani, vice president of Shinhan Bank.
"For dollar/rupee, Rs 82.90 will act as a support and Rs 83.20 as a resistance," he said.
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