USD/INR opened slightly lower on Friday at 89.84, easing from Thursday’s record high of 90.42 as traders position ahead of the Reserve Bank of India’s policy decision. Market chatter suggests that if the RBI cuts rates, the pair could retest the 90 handle, with policymakers’ comments on the rupee’s recent weakness seen as the key catalyst for direction.
Many desks expect USD/INR to consolidate in a 89.80–90.20 near-term range until clarity emerges from the decision. The RBI will announce its policy at 10:00 a.m. IST (0400 GMT / 2300 ET), followed two hours later by the press conference. Markets remain divided over the likelihood of a cut, though many are hoping for dovish commentary or liquidity support.
Indian government bonds opened firmer, with the benchmark 10-year yield slipping to 6.515% from 6.527% as confidence grew that the RBI may lean dovish. Earlier expectations for rate cuts had been scaled back after strong GDP data raised doubts about the need for immediate easing.
India’s Nifty 50 index has turned positive
