Key facts
- The Indian rupee declined for a second consecutive day.
- The decline occurred ahead of the Reserve Bank of India's monetary policy review.
- Traders anticipate measures from the RBI to support the currency.
- The rupee's recent recovery was aided by RBI intervention and expected inflows.
- The currency faces renewed pressure if the upcoming policy review is not supportive.
The Indian rupee experienced a decline for the second consecutive day, occurring just before the Reserve Bank of India's scheduled monetary policy review. Market participants are anticipating that the central bank will implement measures aimed at supporting the rupee. The currency had recently seen a recovery, partly due to intervention by the RBI and expectations of increased capital inflows. However, this recovery is now facing renewed pressure, with the potential for significant impact if the upcoming policy decision on Friday does not provide adequate support.