The Indian rupee was trading virtually unchanged from Monday's level at 55.45 to the dollar at 12.35 pm IST. Steady equity markets and a constant flow of foreign money has kept the rupee quiet in the last few weeks.
However, with crude oil price trading at near two week high and the possibility of QE 3 unleashing a fresh wave of liquidity, the rupee might come under some pressure.
Meanwhile, equity markets were trading higher as sentiments improved following reports of a proposed diesel, LPG and petrol hike. The Cabinet Committee on Political Affairs will meet on Tuesday and is likely to discuss a fuel price hike.
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