Competing cues, caution ahead of RBI policy decision keep rupee nearly flat

The rupee remained stable as traders awaited the Reserve Bank of India's policy announcement. Foreign bank dollar sales and importer hedging demand influenced currency movements throughout the day. Banking system liquidity improved, leading to lower forward premiums on dollar-rupee trades. Economists anticipate the central bank will maintain current policy rates but adopt a hawkish stance. Indian equities faced pressure, while bonds saw yields drift lower amid global market shifts.