The Rupee closed stronger after it logged its best single-day gain in over a month on Monday, boosted by likely dollar sales by the central bank and modest inflows that dulled the spillover from global market volatility. The liquidity impact of FX interventions has remained in focus due to their effect on money market interest rates as worries over hefty government borrowing have kept government bond yields elevated. On Monday, the rupee rose 0.5% to end the session at 91.5125 per dollar, its best one day gain since December 19. The yield on the 10-year benchmark bond rose as much as 8 basis points to 6.77%, the highest since March 2025. The pound held steady against the dollar on Monday near a multi-year high hit last week as attention focused on a Bank of England policy announcement on Thursday. Sterling was last up less than 0.1% versus the dollar at $1.3696. It hit $1.3867 last week, its highest since September 2021, but retreated on Friday as the U.S. currency strengthened after U.S. President Donald Trump nominated Kevin Warsh to lead the Federal Reserve. Attention this week is on the BoE, with the central bank expected to hold its benchmark interest rate at 3.75% when it announces policy on Thursday, according to all but two economists surveyed by Reuters in a January poll. Data has remained robust since the last meeting when the central bank lowered the Bank Rate, while inflation remains the highest among Group of Seven industrialised peers, suggesting that the BoE can hold off from cutting rates for now. The last two meetings have seen rate-setters deeply divided, but the decision this time should be more straightforward. The commodity-linked Canadian dollar gave back some recent gains against its U.S. counterpart on Monday as oil prices tumbled and precious metals added to last week's sharp declines. The loonie was trading 0.6% lower at 1.3695 per U.S. dollar, or 73.02 U.S. cents, after moving in a range of 1.3607 to 1.3697. On Friday, the currency touched its strongest intraday level since October 2024 at 1.3479. Canadian bond yields moved higher across the curve, tracking moves in U.S. Treasuries. The 10-year was up 1.3 basis points at 3.433%. The Government of Canada said it plans to issue a new 10-year green bond this week subject to market conditions. Oil prices fell more than $3 per barrel on Monday after U.S. President Donald Trump said Iran was "seriously talking" with Washington, signaling a de-escalation of tensions with the OPEC member, while a stronger dollar and milder weather forecasts also pressured prices.Brent crude futures fell $3.02, or 4.4%, to settle at $66.30 per barrel, while U.S. West Texas Intermediate crude futures fell $3.07, or 4.7%, to $62.14 per barrel.......