Rupee hits two-month low ahead of RBI policy review

The rupee hits 62.90 in early trade, its lowest level since November 22, as Asian stocks trading with heavy losses. The pair last trading at 62.77/78 vs Friday's close of 62.66/67.

Dealers will closely watch for RBI intervention at current levels after the RBI was suspected to have sold dollars in late session on Friday.

The RBI to decide on rates on Tuesday. While the consensus still is towards no hike in policy rates, RBI chief Raghuram Rajan's comments will be closely watched for future rate trajectory after his recent hawkish comments.

Scotiabank says looking at the next key topside level of 63.90, the top of the November move higher in USD/INR, ahead of the pivotal 64.00 point.