The Indian rupee settled flat at 84.07 (provisional) against the US dollar on Tuesday. This stability was influenced by a combination of positive domestic market sentiments and declining crude oil prices, but was offset by ongoing foreign fund outflows.

Forex traders noted that the rupee is hovering around historically low levels, primarily due to the strength of the dollar. While the local currency received some support from the buoyant domestic equity markets and a dip in crude oil prices, it was still under pressure from persistent selling by foreign investors. There were also indications of intervention by the Reserve Bank of India (RBI), which helped the rupee maintain its value at lower levels.