The Indian rupee edged higher on Wednesday, helped by the central bank keeping its key rate steady, though impending higher tariffs on shipments to the United States are likely to keep the currency under pressure.

Traders anticipate the yield will remain in the 6.33%-6.38% band till the RBI's policy decision on Wednesday. The range could be tested on either side, depending on policymakers' decision and guidance. Although some market participants expect a rate cut, a majority of economists polled by Reuters believe RBI will hold rates steady this time.

This comes in the wake of Trump’s tariff terror, coupled with shares worth Rs 2,567 crore offloaded by foreign investors after the American president’s accusation that India is hands-in-gloves with Russia. The depreciation is also in part due to Oil Marketing Companies (OMCs) demanding dollars during the day.