The Rupee closed steady on Tuesday tracking subdued moves in its Asian peers, with traders expecting the local currency to trade with a slight depreciation bias heading into the U.S. Federal Reserve's policy decision. The domestic currency logged its sharpest intra-day fall in more than two weeks on Monday, pressured by dollar demand from importers and a government debt outflow. The dollar index was up 0.1% at 105.8, while most Asian currencies were rangebound. U.S. bond yields dipped on Monday, with the 10-year Treasury yield down 5 bps at 4.60%. The Fed will deliver its policy decision on Wednesday and while it is widely expected to keep rates unchanged, investors will pay attention to remarks from Chair Jerome Powell for cues on policymakers' thinking about the future path of policy rates. Stronger-than-expected inflation and economic activity data have prompted a sharp pullback in the chances of deep rate cuts by the U.S. central bank. Sterling was on track to break a five-day rising streak against the euro, with investors reckoning that the Bank of England would be more hawkish than the European Central Bank in its monetary policy path. Markets priced in an 80% chance of a first move by the BoE in August while discounting around 40 bps by year-end , implying a 60% chance of a second cut in 2024. Meanwhile, the ECB is seen starting in June and ending the year with almost three rate cuts. The pound dropped 0.15% at 85.46 pence per euro. The single currency hit its strongest since early January at 86.06 after dovish comments from BoE Governor Andrew Bailey. The pound dropped 0.15% to $1.2542 . Markets look at the general elections later this year and the risks of less fiscal discipline, but they forecast a limited impact on financial markets. Oil dipped on Tuesday on the back of rising U.S. crude production as well as hopes of an Israel-Hamas ceasefire. Brent crude futures for June , which expire on Tuesday, were down 52 cents, or 0.6%, at $87.88 a barrel by 11:31 a.m. ET (1531 GMT). The more active July contract fell 63 cents, or 0.7%, to $86.56.......