India's rupee remains rangebound with stable spot market as forward premiums drop, driven by RBI rate cuts and U.S. rate expectations.

• 1-year dollar, rupee implied yield hits 1-year low; 1-month premium falls to November levels.
• Lower forward premiums reduce the rupee's carry trade appeal and exporter hedging incentives.
• Speculative forward activity rises as markets anticipate a potential USD/INR range breakout.