RBI Governor Raghuram Rajan's outlook on the future rate trajectory and his comments on the monetary policy committee report will be keenly watched. Any hawkish outlook may lead to a stock selloff, pressuring INR, traders say.
The pair is seen holding in a 62.80 to 63.30 range until the policy review outcome.
The BSE Sensex up 0.2 percent.
The dollar regained a firmer footing against the yen on Tuesday, as expectations the U.S. Federal Reserve will scale back its stimulus further pulled the U.S. currency off a seven-week low against its Japanese counterpart.