The Rupee opened stronger on Friday,defying subdued Asian cues, with caution prevailing ahead of a ?policy outcome that is expected to steer the currency's near-term outlook. The move higher at the open is largely flow-driven, possibly reflecting some position ?adjustment, a currency trader at a bank said. The Reserve Bank of India is ?set to announce its policy decision around 10:00 am IST, with markets watching whether a rate hike is warranted amid rising pressure on the rupee and inflation concerns following the ?oil price jolt triggered by the Iran conflict. All eyes are now on the Reserve Bank ?of India’s policy decision, due at 10:00 am IST. While most economists expect ?the RBI to keep rates on hold, views among currency traders are far ?more divided. For the RBI, the key challenge will be ?attracting ?capital inflows when global conditions are likely to tighten due to the West Asia crisis, the bank said. Meanwhile, cues from Asia were largely negative for the rupee, with ?most regional ?currencies down on the day and risk ?appetite subdued. Markets remained cautious amid worries over a flare-up in Middle East tensions, with U.S.-Iran talks ?still in limbo. The Japanese yen is testing the 160 barrier on Friday, prompting pushback from Japanese officials, while the U.S. ?dollar is on track for a weekly gain as Gulf tensions fuel safe-haven flows. The yen weakened to ?the critical 160-per-dollar mark briefly in early trades, hitting the level for the third straight session despite verbal warning from authorities. The 160 level is widely seen in markets as a line in the sand for potential official intervention. A flare-up in hostilities this week, including exchanges between Iranian and U.S. forces, has pushed Brent futures firmly above $90 for a weekly gain and supported the dollar on safe-haven flows. The ?euro stood at $1.1612 , up 0.02% so far in Asia, and sterling was steady at $1.34228 . Both ?are heading for ?small weekly losses. The risk-sensitive Australian dollar was down 0.1% at $0.71265, and the New Zealand dollar held flat at $0.5867 with a 2% weekly advance. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, was little changed at 99.434, ?on track ?for a 0.5% gain for the week.......