The Indian rupee firmed against the U.S. dollar in evening deals on Tuesday, as regional shares rose on hopes for a rate cut by the Reserve Bank of India at its monetary policy review on Wednesday.

Indian central bank is widely expected to slash repo rate by 25 basis points to 6.00 percent, amid moderation in food inflation and to prevent the possible slowdown on GDP growth arising from the rupee demonetization.

The rupee strengthened to 67.77 against the greenback, its highest since November 17. The rupee is likely to locate resistance around the 66.00 region.

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