Supported by easing oil prices and firm domestic equities, the rupee reversed a two-day losing run to settle marginally higher even as traders stayed cautious ahead of the RBI’s rate decision.The rupee closed 7 paise stronger at 85.80 against the US dollar on Thursday, snapping a two-session slide as positive cues from Asian currencies and a softer crude oil outlook offered support. The local unit had closed at 85.87 on Wednesday.According to forex traders, the rupee opened at 85.86 and traded within a narrow band of 85.67 to 85.96 during the day before ending at 85.80. While the gain was modest, it marked a break from the recent downward pressure driven by a firm dollar index and global uncertainty, PTI reported.“The rupee may remain under pressure due to strong US dollar sentiment and elevated crude prices,” said Anuj Choudhary, research analyst at Mirae Asset Sharekhan. “However, fresh FII inflows could offer some support at lower levels. Market attention is now on the RBI policy decision due Friday.”Traders are also watching out for the US non-farm payrolls data and weekly jobless claims, which could sway the dollar’s direction. The US dollar index, which measures the greenback against six currencies, was up 0.06% at 98.85.The Reserve Bank of India’s Monetary Policy Committee began its three-day meeting on Wednesday, with the outcome due on June 6. While the central bank is expected to maintain status quo, some analysts have flagged the possibility of a 25-basis-point rate cut.On the energy front, Brent crude futures edged up 0.31% to $65.05 per barrel — still low enough to benefit net oil importers like India.Meanwhile, the domestic equity market remained upbeat. The BSE Sensex climbed 443.79 points (0.55%) to close at 81,442.04, while the Nifty added 130.70 points (0.53%) to end at 24,750.90.Foreign institutional investors were net buyers on Wednesday, picking up shares worth Rs 1,076.18 crore, according to exchange data.