MUMBAI: The Indian rupee closed nearly flat on Monday, wedged between a broadly weaker dollar and steady hedging demand from domestic firms, while optimism over U.S.-India trade talks offered some support to market sentiment. The Indian rupee closed at 90.1525 per dollar, little changed from 90.1625 in the previous session. The dollar slid against major peers amid renewed concerns over the independence of the U.S. Federal Reserve, but traders said persistent corporate demand for dollars prevented the Indian rupee from capitalising on the move. The greenback was last down 0.4% at 98.8 against a basket of peers, while gold struck a record high of more than $4,600 an ounce, also buoyed by investor concerns over simmering geopolitical tensions around Iran. “The downside risks for the dollar from any indications of further determination to interfere with the Fed’s independence are substantial. Again, the bond market will be the most important barometer,” analysts at ING said in a note. The 10-year U.S. Treasury yield was last up nearly 3 basis points at 4.198% while U.S. equity futures pointed to a weak start for Wall Street. Meanwhile, Indian benchmark equity indexes, the BSE Sensex and Nifty 50, reversed early losses to close higher by about 0.4% each after concerns over trade talks with the U.S. eased after Washington’s new ambassador to New Delhi said the two countries will discuss trade issues on January 13. India will also be invited to join Pax Silica next month, Sergio Gor said, referring to a U.S.-led initiative to build a silicon supply chain from critical minerals to semiconductors and AI. The failure to reach a deal with the U.S. yet has been a persistent drag on the rupee and has also weighed down foreign portfolio inflows into Indian assets. Foreign investors have net sold over $1 billion of local stocks in January so far, adding to the near $19 billion of outflow last year.