<h1>Rupee's short-term rally driven by equities, risk-on mood; sanctions, Fed cues, FII flows and regulatory issues noted</h1> The report describes a short-term appreciation of the rupee against the US dollar driven by improved domestic equities and global risk-on sentiment, noting potential market drivers including anticipated comments from the US central bank, ongoing sanctions on Russia, and reduced India-China tension following high-level talks. Market participants flagged potential continued pressure from dollar strength and foreign institutional investor outflows, while technical thresholds were identified for further moves. Relevant legal considerations include the impact of international sanctions and geopolitical agreements on capital flows, regulatory oversight of foreign exchange interventions, and disclosure obligations for institutional investors.