The Indian rupee ended nearly unchanged at 93.06 against the US dollar on Monday, following a previous close of 93.10. The currency had recently rebounded from a record low of 95.21 after the Reserve Bank of India (RBI) took measures to curb speculation. Early trading saw the rupee rise to a two-week high of 92.7925, but it lost ground as importers engaged in hedging amid rising demand for dollars linked to foreign portfolio outflows. This surge in hedging demand has pushed costs to their highest levels since the 2007-2009 global financial crisis. The one-year dollar-rupee implied yield reached a peak of 3.96% before declining to 3.57%, while India's one-year overnight indexed swap (OIS) rate fell nearly 20 basis points to 6.17%. Market analysts suggest that current movements in the USD/INR and forwards are being driven more by market flows than by underlying fundamentals. As global tensions surrounding Iran continue to influence markets, the RBI's upcoming monetary policy decision on Wednesday is expected to maintain current interest rates, aiming to stabilize market conditions.