The USD/INR exchange rate hovers near historic highs as the U.S. dollar index falls. The market anxiously awaits the Reserve Bank of India’s (RBI) upcoming interest rate decision. This rate affects not just the INR but also the overall economic outlook for India.

Currently trading at 87.12, this value is just below the previous record of 87.9640. The currency’s potential movements will be shaped by how the RBI tackles current economic challenges. Speculation and forecasts swirl around what this interest rate decision might entail.

Traders should prepare for volatility. Any decisions made by the RBI could result in significant shifts in the Indian Rupee’s valuation.