The Rupee spot depreciated for the second straight week, as the dollar rebounded against the basket of major currencies while domestic equities weakened and FIIs remained net sellers.  Rupee saw some strength during the budget day but lost most of it ahead of the major central bank’s meetings and key data including GDP numbers, PMI data, and the nonfarm payroll. RBI building back up its reserves, which hit a two-year low in October, exerted further pressure on the domestic currency Rupee’s weakness last week was also attributed to a strong outflow of Rs. 28,852 crores in Jan, FPIs sold Rs. 5,700 crores in equities as doubt over Adani’s sustainability raised questions over the health of the economy.  At center stage, this week will be the RBI monetary policy. Retail inflation for December 2022 fell to a year low of 5.72 percent, the second consecutive month when it has remained within the RBI’s tolerance band of 2 percent to 6 percent. India’s Retail inflation has eased more than expected in December, but the core inflation remains below 6%. Thus, it is important to see whether the RBI Monetary policy committee pauses the policy rate hike or increases it by 25 basis points to 6.50 %.  In its last meeting in January, the repo rate was hiked by 35 basis points to 6.25%.