December 18, 2012 / 2:02 AM / 5 years ago

Rupee edges up; RBI policy in focus

A grocery shop owner counts rupees notes in Ahmedabad May 23, 2012. REUTERS/Amit Dave/Files

Reuters Market Eye - The rupee is trading at 54.78/79 versus its previous close of 54.84/86 as traders await the Reserve Bank of India’s policy decision at 11.00 a.m. for direction.

Markets are broadly positioned for a status quo at the policy review but a surprise rate cut can boost shares and indirectly hurt the USD/INR.

Asian shares edge up tracking overnight gains in U.S. stocks, as fresh signs of compromise maintain a new optimism that the U.S. “fiscal cliff” budget tussle could be settled before tax hikes and spending cuts begin to bite early next year.

USD/INR is seen moving in a 54.70 to 54.90 band until the policy review.

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