New Delhi, Dec. 9 -- As the Indian rupee hovers near record lows, currency traders are keenly awaiting the US Federal Reserve's policy decision on Wednesday, December 10, with hope that a 25-basis-point rate cut, accompanied by a dovish tone from Chair Jerome Powell, will weaken the US dollar and lend support to the Indian currency.

The rupee gained 17 paise at 89.88 against the US dollar on Tuesday, amid softness in the US currency and crude oil prices. The domestic currency dropped to its record low of 90.46 per dollar on December 4, primarily due to persisting uncertainties over an India-US trade deal, and relentless foreign capital outflow.

Meanwhile, India and the US will begin their three-day talks on the first phase of their prop...