The Indian rupee traded marginally higher on Tuesday, recovering from an initial slide that brought close to a new low, with dollar offers from state-run lenders, possibly for the central bank as well as foreign banks lending support. The rupee was quoted at 96.3325 per U.S. dollar at 11:15 a.m. IST, having ‌settled at ⁠96.3450 on ⁠Monday. The currency had opened marginally weaker, slipping to 96.3850, just one tick short of its all-time low of 96.3875 hit in the previous session. A large state-run bank, along with other public sector lenders, was seen offering dollars in USD/INR, which some traders took as an indication of likely central bank intervention. The Reserve Bank of India has been intervening regularly ⁠to support ‌the rupee, aiming to keep the pace of depreciation measured without defending any specific level. "Alongside that, there have been (a) few foreign ⁠banks whose name I am hearing on offers," a currency trader said. The rupee has consistently required support from the central bank against pressure to weaken against the dollar, driven by limited hedging interest from exporters and a continuing mismatch in daily flows that underscores an imbalance in the market. India's merchandise trade deficit expanded to $28.38 billion in April, driven in large part by a jump in ‌crude oil imports to a six-month high. This comes at a time when capital inflows remain subdued and oil prices have shown little sign of moderating ⁠since the onset of the Iran conflict in late February. With Brent crude near $110 a barrel, up 50% since the war began, sustained foreign outflows of more than $20 billion from Indian equities have further intensified pressure on the rupee. The currency is down over 6% in that period. "When capital leaves in waves, currencies rarely stand still - and the rupee is bearing that full weight," Amit Pabari, managing director at CR Forex, said.