The Rupee closed stronger on Monday, as the boost from a broadly weaker dollar was blunted by persistent hedging demand from importers and lacklustre foreign portfolio flows. While the currency rose to an intraday peak of 88.1475, traders pointed out that dollar demand from local importers, including oil companies, shaved its gains later in the session. Data released on Monday showed that India's merchandise trade deficit narrowed in August to $26.49 billion, from $27.35 billion in July, as exports slowed after U.S. President Donald Trump hiked import tariffs on Indian goods. Key rate decisions in the U.S., Japan, the United Kingdom, Canada, and Norway are due this week, with the Federal Reserve's decision on Wednesday taking centre stage. While money markets have fully priced in a 25-basis-point rate cut by the Fed on Wednesday, investors will pay close attention to commentary from Chair Jerome Powell and policymakers' updated economic and benchmark policy rate projections. The interest rate-expectations sensitive 2-year U.S. Treasury yield was steady at 3.55%. On the longer end of the curve, the 10-year U.S. Treasury yield was steady at 4.06%. The dollar weakened across the board on Monday as investors wait for the Federal Reserve to resume interest rate cuts at this week's meeting and as President Donald Trump renewed calls for faster monetary policy easing. Traders are fully pricing in a 25 basis point cut at the Federal Open Market Committee meeting on September 16 and 17, and about a 5% chance of a 50 basis point cut, according to the CME FedWatch Tool. Against the Japanese currency, the dollar was 0.2% lower at 147.335 yen, while the euro advanced 0.3% to $1.1771. The U.S. dollar has steadied since a record slide earlier this year, but many currency market players still view the greenback as locked in a bearish trend. The euro's resilience is underpinned by expectations of Federal Reserve policy easing alongside diminishing prospects for further European Central Bank rate cuts. Sterling was 0.4% higher at $1.3606 on Monday, its strongest since early July. Oil prices settled higher Monday as investors assessed the impact of Ukrainian drone attacks on Russian refineries and of U.S. President Donald Trump pressing NATO nations to halt Russian oil purchases. Brent crude futures settled up 45 cents, or 0.67%, at $67.44 a barrel while U.S. West Texas Intermediate crude settled 61 cents higher, up 0.97%, at $63.30 a barrel.......