The Rupee closed weaker on Tuesday as strong dollar demand continued to put pressure on the currency, while a fresh low was averted after likely central bank intervention. Traders said that state-run banks likely sold dollars near the 91/rupee level, likely on behalf of the Reserve Bank of India, which pulled back the currency from near record lows. Bankers said that the RBI also mildly intervened on Friday and Monday, and it appeared that the central bank did not want the rupee to breach its record low, at least on Tuesday. Meanwhile, growing tension between the U.S. and European Union is likely to keep the rupee under pressure, according to traders, after U.S. President Donald Trump threatened to rekindle a trade war with Europe over the future of Greenland. The dollar was set for its largest daily fall in over a month on Tuesday, after White House threats to Europe over the future of Greenland triggered a broad selloff across U.S. stocks and government bonds, and drove the euro and the pound higher. The dollar index , which measures the U.S. currency's performance against a basket of six others, fell as much as 0.7% - marking its biggest one-day drop since mid-December - as investors worried about exposure to U.S. markets. The euro was last up 0.65% at $1.1721, while the pound gained 0.25% to trade at $1.34. Sterling got a minor additional lift from UK labour market data that showed unemployment remained at a five-year high, but also offered positive signs such as vacancy numbers plateauing. The yen, which slid overnight as a selloff in Japanese government bond markets accelerated, picked up as European trading got underway, leaving the dollar down 0.04% at 158.055. The Swiss franc , a key beneficiary of any safe-haven flows, strengthened for a third straight day, leaving the dollar down 0.78% at 0.791 francs. Against the Chinese yuan trading offshore in Hong Kong , the dollar was steady at 6.9557 yuan, its weakest since May 2023. The People's Bank of China left benchmark lending rates unchanged for an eighth straight month in January, as expected by analysts polled by Reuters. The Australian dollar was last up 0.24% to $0.673, while the New Zealand dollar climbed 0.62% to $0.584, its highest level this year. Oil prices rose on Tuesday as investors monitored U.S. President Donald Trump's tariff threats against European states that oppose his push to acquire Greenland. Prices also drew support from the temporary suspension of output at Kazakhstan's oil fields and expectations of firmer global economic growth that could drive fuel demand.......