India, Sept. 30 -- The rupee settled on a flat note on Tuesday, just a tad over the psychologically important 96 per dollar level, driven by possible RBI intervention and a pullback in oil prices following hopes of negotiations between the US and Iran. Forex traders said gains in the rupee were capped by US dollar demand from local importers and a stronger greenback.

Additionally, the Reserve Bank of India (RBI) is likely to intervene as the rupee approaches the 96 level against the American currency, they said. At the interbank foreign exchange market, the rupee opened at 96.03, then lost ground and touched an intraday low of 96.15 against the American currency. At the end of Tuesday's trading session, the domestic unit was quoted at 95...