On Tuesday, the Indian rupee appreciated by 0.1%, closing at 93.0075 against the U.S. dollar, its strongest position since mid-March. This recovery follows a period of record lows, largely due to the Reserve Bank of India's (RBI) measures to curb speculative trading in the foreign exchange market. The unwinding of arbitrage positions has contributed to a widening gap between onshore and non-deliverable forwards, with spreads reaching levels not seen since the onset of the COVID-19 pandemic. The rupee's recent performance comes amid heightened tensions in the Middle East, particularly between Iran and Israel, as U.S. President Donald Trump set a deadline for a deal with Iran. Analysts suggest that unless a ceasefire or an extension of the deadline occurs, the dollar may remain strong. Additionally, concerns regarding the geopolitical situation have kept oil prices around $110 per barrel, prompting foreign investors to withdraw approximately $16 billion from Indian stock markets since March. Traders are also looking forward to the RBI's monetary policy decision, where it is anticipated that the central bank will keep interest rates unchanged while focusing on supporting the rupee and managing bond yields.