The Indian rupee opened marginally higher at 95.71 against the US dollar on June 4, as traders adopted a cautious stance ahead of the Reserve Bank of India's monetary policy announcement scheduled for June 5. The currency remained under pressure from persistent foreign portfolio outflows and elevated global crude oil prices, although expectations of potential policy support measures helped limit losses.

Market participants are primarily focused on the outcome of the RBI's Monetary Policy Committee meeting, with most economists expecting the central bank to maintain the benchmark repo rate at 5.25%. However, investors will closely track the RBI's assessment of inflation, economic growth, the weakening rupee, and rising energy prices for indications of future policy direction.

The rupee has faced renewed pressure in recent sessions amid a sharp rise in foreign investor withdrawals from Indian equities and concerns over prolonged geopolitical tensions affecting global energy markets. As a major importer of crude oil, India remains vulnerable to higher energy costs, which can widen the current account deficit and increase imported inflation.

Recent reports suggest the government may introduce measures to support the currency, including steps aimed at attracting foreign capital into domestic debt markets. Such initiatives could provide relief to the rupee without requiring immediate interest rate hikes from the central bank.

Currency traders and investors are expected to remain cautious until the RBI's policy statement provides greater clarity on the central bank's outlook for inflation, growth, and currency stability amid a challenging global environment.