The Indian rupee is poised to open higher on Wednesday, adding to its recovery over the last two days that was fuelled largely by heavy intervention by the central bank. The 1-month non-deliverable forward indicated that the rupee will open at 86.

Projects FY26 inflation at 4.2%, GDP growth at 6.7%

The Reserve Bank of India (NSE:BOI) (RBI) took action in the foreign exchange market this week to limit speculation in the rupee, an unexpected move that caught traders off guard who anticipated a more laissez-faire stance from the new governor,

India's central bank is widely expected to cut interest rates for the first time in nearly five years in Governor Sanjay Malhotra's first monetary policy review on Friday, aiming to boost economic growth which is seen falling to a four-year low.

The Reserve Bank of India intervened in the foreign exchange market this week to curb speculation in the rupee, according to a person familiar with the central bank’s thinking, surprising traders who expected a more hands-off approach on the currency from the new governor.