The Rupee opened weak to a fresh all-time low on Friday, with expectations of further losses reinforcing skewed flows and lifting hedging demand. While the rupee managed a modest recovery on Thursday, the price action underscored the pressure that the currency continues to face. It contended with heavy dollar demand through the session and was able to hold on only with support from the Reserve Bank of India. That the recovery was limited despite largely supportive Asian cues was telling, traders said. Underlying dollar demand remains firm due to bullion import flows and equity outflows, with offshore demand linked to speculative positions reinforcing the bias. The RBI has been smoothing depreciation through intermittent intervention, traders say, in an attempt to keep moves orderly. Expectations of further rupee weakness have been steadily building, he added, prompting higher hedge ratios and curbing willingness among exporters to sell dollars in the forward market. Meanwhile, the dollar index was on track for its steepest weekly fall in about a year, rattled by investor unease after President Donald Trump’s Greenland rhetoric and subsequent pullback, while the Japanese yen hovered near one-week lows before Bank of Japan's policy decision. The dollar dropped on Thursday despite robust U.S. data. The data reinforced expectations that the Federal Reserve will pause its rate-cutting cycle at its policy meeting next week. The yen stayed rangebound after the Bank of Japan held rates steady on Friday, as expected, while the U.S. dollar headed for its steepest weekly drop in a year after geopolitical tensions and abrupt policy shifts around Greenland unsettled investors.The yen was slightly weaker at 158.70 following the BOJ's rate decision and after it raised its economic and inflation forecasts, highlighting the central bank's readiness to continue hiking still-low borrowing costs. Last month, the BOJ raised its policy interest rate to a 30-year high but that has not helped the frail yen. Traders are concerned that a break beyond 160 per dollar could prompt Tokyo to step into the currency market to support the yen. The spotlight will now be on comments from Governor Kazuo Ueda to gauge when the next hike will come and whether there is any hawkish tilt from policymakers to support the yen. Ueda will hold a news conference to explain the decision at 0630 GMT. The U.S. dollar was poised for its biggest weekly drop in a year after President Donald Trump's Greenland threats and abrupt reversal unnerved investors. The shifting geopolitical landscape has weighed on sentiment this week as Trump said he had secured U.S. access to Greenland in a deal with NATO that came as he backed off tariff threats against Europe and ruled out taking the autonomous territory of Denmark by force. The dollar has borne the brunt of investor angst in the currency markets as U.S. assets were pummelled at the start of the week amid the intensifying geopolitical tensions. The dollar index , which measures the U.S. currency against six units, was at 98.366 after dropping 0.58% in the previous session, on course for a 1% slide, its worst weekly performance since January 2025. The euro was steady at $1.1746, hovering near the three-week high it touched earlier this week, while sterling fetched $1.3496, near a two-week high hit in the previous session. Oil prices rebounded on Friday after U.S. President Donald Trump renewed threats against major Middle Eastern producer Iran, raising concerns of military action that could disrupt supplies. Brent crude futures for March rose 35 cents, or 0.55%, to $64.41 a barrel. U.S. West Texas Intermediate crude rose 33 cents, or 0.56%, to $59.69 a barrel as of 0243 GMT.......