The Indian Rupee is expected to trade in a narrow range near 93 per dollar, supported by the central bank-spurred unwinding of arbitrage positions.
However, lingering risks of a further flare-up in the Iran war are expected to cap upside, with the rupee remaining vulnerable to any escalation in the conflict.
US President Donald Trump warned that Iran could be 'taken out' if it misses his Tuesday night deadline to reach a deal, threatening to rain 'hell' on Tehran unless it agrees by 8:00 pm EDT on Tuesday to reopen the Strait of Hormuz.
Brent crude contract for June delivery climbed to $111 on Tuesday, further increasing the risk premiums for the rupee.
