Indian rupee little changed at 59.1550/1650 against US dollar versus its previous close of 59.1525/1625 on caution ahead of the central bank's monetary policy review decision announcement due 0530 GMT.
All but three of the 52 economists polled by Reuters expect the RBI to hold key policy rates steady in its monetary policy review.
The Reserve Bank of India Governor Raghuram Rajan is expected to keep the country's key lending rate unchanged and temper his tough rhetoric on inflation in a conciliatory gesture to a new government elected on a platform of reviving economic growth.
Traders will monitor domestic shares for cues on foreign fund flows.
The pair is seen trading in 59.00 to 59.40 during the session.