MUMBAI: The Indian rupee closed flat on Tuesday after lingering in a tight band through the day’s session as state-run banks’ mild dollar sales helped the currency hold above its all-time low.

The rupee closed at 83.7275 against the US dollar, unchanged from its closing level in the previous session.

It had declined to an all-time low of 83.74 on Monday.

The currency was range-bound, shuffling between 83.7275 and 83.7350 through the day, with traders pointing to dollar sales from state-run banks as the reason behind the rupee staying above its record low.

The rupee has been under pressure over the last few trading sessions, but near-term volatility expectations remained muted, signalling that the Reserve Bank of India is expected to continue intervening to limit sudden declines. The dollar-rupee’s 1-month implied volatility is currently at 1.55%, near its lowest level since 2005.