The Indian rupee dipped on Thursday, extending a two-session decline, pressured by weaker Asian peers and importer hedging after a central bank-led relief rally. The rupee was at 95.7550 per U.S. dollar as of 12:45 p.m. IST, after settling at 95.7050 on Wednesday. ‌The currency ⁠has meandered ⁠in a narrow range through the session and is currently near its lowest level of the day. The rupee has rallied after the Reserve Bank of India's intervention in spot and forward markets helped it recover from a lifetime low of 96.96 hit around mid-May. Expectations of measures to boost inflows ⁠and support ‌the currency have further aided the recovery. The RBI's activity has provided breathing room for the rupee and ⁠dragged down FX premiums, a currency trader at a private sector bank said. If Friday's RBI policy does not deliver steps to support the currency, expect renewed pressure, especially now that the rupee has corrected and forward premiums have come off, the trader added. Lower forward premiums reduce the cost for importers to hedge future dollar ‌payments, while disincentivising exporters from hedging. The RBI is expected to keep interest rates on hold on Friday, according to most economists, though ⁠traders are more evenly split on whether the central bank will opt for a hike or stay unchanged. A rate hike is expected to lift the rupee, though traders doubt how long the relief will last. Meanwhile, most Asian currencies weakened and regional equities slipped. Renewed U.S.-Iran hostilities rattled risk assets, while mixed signals on de-escalation kept investors wary.