At 9.15 am, the rupee traded at 69.04 a dollar, up 0.32% from its previous close of 69.27. The Indian had currency opened at 69.14 a dollar.
Markets were closed on Wednesday due to Eid.
RBI is expected to reduce the repurchase rate by 25 basis points (bps) to 5.75%, according to a majority of economists surveyed by Bloomberg, three expects a 50 bps cut.
At pre-open, the benchmark Sensex index was down 0.04% at 40,252.66 points. Year to date, the index has risen 11.64%.
Bond yield fell as crude oil continued to slide easing concerns about inflation and government's finances. The 10-year bond yield was at 7.002% compared with Tuesday's close of 7.02%. Bond yields and prices move in opposite directions.
So far this year, the rupee has risen 0.74% against the US greenback. During the period, foreign investors bought $11.53 billion in Indian equities and $339.80 million in debt market.
Asian currencies were trading higher. Indonesian rupiah was up 1%, Japanese yen 0.2%, Malaysian ringgit 0.15%, Thai Baht 0.08%, Taiwan dollar 0.05%. However, South Korean won was down 0.15%, Philippines peso 0.07%.
The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 97.277, down 0.04% from its previous close of 97.32.
(Bloomberg contributed this story)