The Indian rupee is likely to return to being driven by oil prices and equity flows this week, with central bank rule-linked flows now waning. The Reserve Bank of India (RBI) is expected to influence the rupee's direction. The rupee rose by 0.4% last week to 92.7275 per U.S. dollar, following a nearly 2% rally the previous week when banks were forced to unwind arbitrage trades to comply with an RBI directive capping the size of their onshore FX positions. The benchmark 10-year yield dropped 22 basis points last week, marking the biggest weekly fall since October 2019. Observers are also monitoring any potential increase in foreign investor inflows following heavy selling of government notes.