Rupee Opens 23 Paise Higher At 90.23 Against Dollar Ahead Of RBI Policy Decision

The Indian rupee opened 23 paise higher at 90.23 against the U.S. dollar on February 6, compared with its previous close of 90.43, as trading activity remained muted ahead of the Reserve Bank of India’s Monetary Policy Committee policy announcement.

The currency strengthened modestly in early trade as market participants avoided large directional bets before the policy outcome. The rupee had seen gains earlier in the week following the announcement of an India–U.S. trade agreement, but importer demand for dollars limited further appreciation and prevented the currency from moving below the 90 level.

RBI Policy Decision In Focus

The RBI is scheduled to announce the outcome of its first MPC meeting of the year later on February 6. Under Governor Sanjay Malhotra, the central bank has cumulatively reduced the repo rate by 125 basis points since February 2025, according to RBI data.

A Moneycontrol poll indicated that the central bank is expected to maintain its existing “neutral” policy stance in the February review. The RBI’s previous policy actions have focused on managing liquidity conditions while keeping inflation within the tolerance band.

India’s headline inflation has remained below the 2% mark in recent readings. The RBI has not said that its inflation outlook has changed. Market participants are also monitoring the rollout of the new consumer price index series with a 2024 base year, which comes into effect starting with the January inflation print.

In the foreign exchange market, the rupee's movement continued to show a balance between positive sentiment after recent trade-related news and dollar demand from importers. In early Asian trade, other emerging market currencies also didn't move much as investors waited for important signals from central banks.

The RBI's policy decision and statement are likely to set the tone for the rest of the session in currency markets, with traders paying close attention to any news about changes in liquidity and policy. The rupee's opening level on February 6 showed that traders were being careful before these events.