The rupee marginally higher in opening trades at 54.02/04 versus Monday's close of 54.08/09.
"The opening has been flat ahead of the policy...the rupee is likely to stay nimble waiting for RBI," said a state-run bank dealer.
Dealers waiting to see whether RBI succumbs to government pressure and cuts the repo rate. A move to 53.70 is possible on a repo cut, they added.
Technical charts show USD/INR has major resistance at 54.32-54.42 with 54.32 being the 50 percent Fibonacci retracement of the decline from the record high on June 22 of 57.32 to the May 10 low of 51.32. Minor resistance at 54.18-20, a previous major low and the 55-day moving average.
