Rupee opens 23 paise higher against dollar at 90.23, RBI policy decision awaited

Reserve Bank of India

The rupee opened 23 paise higher on February 6 while traders stayed on the sidelines ahead of the Reserve Bank of India’s monetary policy committee (MPC) decision later in the day.

The currency was trading at 90.23 to the dollar after closing the previous session at the 90.43. Earlier in the week, the rupee made substantial gains after the India and the US announced a trade deal, however, buying by importers prevented the rupee from crossing the psychological Rs 90 mark.

The RBI is likely to keep rates steady in the first MPC review of the year, while traders will look forward to measures that could bring in durable liquidity into the financial system. Under governor Sanjay Malhotra, the RBI has cumulatively cut the repo rate by 125 basis points (bps) since February 2025.

The central bank will stick to its “neutral” stance and keep its tone dovish in the upcoming policy, a Moneycontrol poll found.

With headline inflation below the 2 percent mark, the RBI is also unlikely to revise its inflation outlook. Traders, however, cautiouned that the new 2024 base year CPI series, starting with the January print, could introduce an upward bias of 20-40 basis points.

“The growing consensus is that rate cuts are unlikely, at least until the end of 2026. This steady policy stance provides an anchor for the rupee — limiting downside risks,” Amit Pabari, the managing director of CR Forex Advisors said.