The Reserve Bank of India likely intervened to support the rupee before the open of the local spot market ahead of a closely-watched monetary policy decision on Friday, four traders told Reuters. The rupee was quoting at 87.

The Reserve Bank of India cut its policy rate for the first time in nearly five years as economic growth slows and inflation cools.

Central banks around the world cut interest rates last year, with India maintaining higher rates due to lingering inflation. India maintained high rates due to lingering inflation. Last year, India's economy grew at a rate of 8%.