The Reserve Bank of India's rate decision due at 0530GMT with most economists expecting the central bank to hold rates steady.
RBI Governor Raghuram Rajan's outlook on the future rate trajectory and the monetary policy committee report will be keenly watched. Any hawkish outlook may lead to a stock selloff, pressuring INR.
NSE Nifty futures in Singapore down 0.52 percent, while the broader MSCI Asia ex-Japan index lower 0.07 percent.
The dollar regained a firmer footing against the yen on Tuesday, as expectations the US Federal Reserve will scale back its stimulus further pulled the US currency off a seven-week low against its Japanese counterpart.