INR moves key to bonds with the currency opening weaker on an Asian sell-off.
Most traders are expecting the central bank to keep key rates unchanged on Tuesday but the tone of the policy will be crucial.
Recent comments from the central bank chief and the monetary policy panel report suggest rates may remain elevated for some time to come.
After a surge in bond buying by foreign funds, they were net sellers of $107.94 million on Thursday, latest regulator data showed.
U.S. Treasuries prices rose on Friday with benchmark yields hitting near two-month lows on safe-haven bids for bonds stemming from worries about tightening credit conditions in China and a looming currency crisis in Argentina.