MUMBAI, Jan 28 (Reuters): The Indian rupee weakened on Monday, posting its biggest single-day fall in three weeks, on the back of heavy dollar buying by oil firms and other importers looking to meet month-end demand, while weak regional sentiment added to the downside.

Almost all Asian currencies weakened against the dollar while global equities saw some consolidation after recent gains as investors awaited confirmation that the financial market conditions and the outlook for the euro area have improved.

Some caution also prevailed ahead of the Reserve Bank of India policy review on Tuesday, when the central bank is widely expected to cut interest rates by 25 basis points, its first cut in the key lending rate since April 2012.

In its macro-economic report, released close to the market closing time, the central bank said a sustained commitment to contain fiscal and current account deficits was needed to create room for monetary easing.

"Month-end dollar demand from importers and the euro's losses hurt the rupee. There were good bunched up flows from Friday, but the demand was strong," said A. Ajith Kumar, a senior foreign exchange dealer with Federal Bank.