The Indian rupee depreciated for the second consecutive session and settled for the day lower by 29 paise at 85.90 (provisional) against the US dollar on Wednesday. Dollar recovery from 6-week low and higher international oil prices weighed on the local unit. Besides, risk-averse sentiments and foreign fund outflows due to heightened trade and geopolitical tensions also pressured the domestic unit. Local equities however managed to end slightly higher limiting losses in the counter. The benchmark 30-share BSE Sensex rose 260.74 points, or 0.32 percent, to 80,998.25 while the broader NSE Nifty index closed up 77.70 points, or 0.32 percent, at 24,620.20. 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.