• The Indian Rupee recovers in Wednesday’s early Asian session. 
• Possible RBI intervention to sell USD might support INR; higher crude oil prices, foreign outflows might weigh on its upside. 
• Investors will closely watch the RBI’s MPC interest rate decision on Thursday, with no change in repo rate expected. 

The Indian Rupee (INR) edges higher on Wednesday despite the stronger US Dollar (USD). The downside of the local currency is likely to be limited as potential intervention from the Reserve Bank of India (RBI) might prevent the local currency from volatility in the near term. However, the recovery of crude oil prices amid ongoing geopolitical tensions in the Middle East might drag the INR lower as India is the world’s third-largest consumer of oil. Additionally, the worries about foreign outflows from India and other emerging markets could weigh on the INR. 

All eyes will be on the RBI’s Monetary Policy Committee (MPC) meeting on Thursday. Any indication of a dovish shift in the central bank's August meeting policy may further exert some selling pressure on the Rupee.