The Indian rupee extends losing streak in opening trades on Thursday as dollar is seen recovering, following a sharp slide in the previous session. Moreover, domestic shares look set to open largely unchanged as investors look ahead to the Reserve Bank of India's (RBI) monetary policy decision on June 6, with the central bank widely expected to cut interest rates by 25 basis points for the third consecutive time. Rupe opened at Rs 85.86 against the dollar and dropped to a low of 85.94 so far during the day. Yesterday, rupee depreciated for the second consecutive session and settled for the day lower by 29 paise at 85.90 against the US dollar. Benchmark indexes Sensex and Nifty too eked out modest gains on Wednesday after three straight sessions of losses due to heightened trade and geopolitical tensions.

Investors are now awaiting cues from the Reserve Bank's monetary policy announcements. The Reserve Bank of India (RBI) could go for a 'jumbo rate cut' of 50 basis points on Friday, an SBI research report stated. The sharp moderation in CPI inflation, hitting a 67-month low of 3.34% in Mar'25 due to sharp correction in food inflation bodes well for lowering the average CPI headline forecast for FY26 below 4% now. Nominal GDP growth is expected to be in the range of 9-9.5% for FY26 (Budget: 10%), signifying a Goldilocks period to slash the policy rates given the low growth and low inflation, it noted.

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