India's Rupee edged down on Monday's close, facing pressure from Asian currency weakness and Dollar purchases by public sector banks.

The Rupee was trading at 82.9050 against the Dollar as Monday's session closed, compared to 82.8775 during the previous session.

Reuters reports that the Rupee was trading within a range of 82.83 to 82.9150 on Monday.

"Inflows have been supportive, but Dollar purchases from state-run banks have limited the Rupee's rally," said a trader with a private bank. "It is difficult to determine whether these Dollar purchases were on behalf of importers or the central bank."

Traders have indicated that the country's central bank is actively acquiring Dollars in the spot market due to continuous foreign inflows into the country's debt and equity markets. 

This has limited the Rupee's gains in recent trading sessions.

"This (Reserve Bank of India) intervention is likely to continue, further contributing to the stability of the Rupee against the Dollar," according to Jateen Trivedi, vice president and research analyst at LKP Securities.

"We expect the Rupee to trade sideways in the range of 82.70 and 83.20 going into the Federal Reserve's policy."

The majority of Asian currencies were lower ahead of policy decisions by the Bank of Japan and US Federal Reserve this week.

At the Bank of Japan's meeting, which is due to end on Tuesday, it may signal an end to negative interest rates.

On Wednesday, during the Fed's review, investors will evaluate whether policymakers alter their forecasts for interest rate reductions throughout the year.

In December, the US central bank forecast 75 basis points of cuts this year.

"The short-term reaction in the Dollar should be primarily driven by projections on rates and other macro indicators," ING Bank said in a note. 

"We expect an unchanged dot plot but admit that a hawkish revision looks more likely than a dovish one."