The Indian rupee opened higher against the US dollar on Wednesday, appreciating 46 paise as markets awaited the Reserve Bank of India’s upcoming monetary policy decision.
The currency’s early strength reflects trader positioning ahead of the central bank’s announcement, with participants closely watching for signals on interest rates and inflation management.
This move follows a period of fluctuation for the rupee, which had previously traded near the 95 level against the greenback.
On Thursday, the currency had appreciated 26 paise to trade at 94.90, marking a reversal from earlier weakness.
Traders had previously expected the rupee to trade in the 95.12-95.16 range, indicating ongoing sensitivity to macroeconomic data and policy expectations.
The RBI’s policy decision is a key catalyst for currency markets, as interest rate differentials and inflation outlooks directly impact foreign exchange flows.