MUMBAI, Oct 9 Reuters The Indian rupee rose slightly on Wednesday, comforted by a decline in oil prices and gains in most of its regional peers, while traders awaited the Reserve Bank of India39;s monetary policy decision.

The rupee was at 83.9275 as of 0930 a.m. IST, compared to its previous close at 83.9625.

The currency has hovered close to its record low of 83.9850 over the past three sessions, but avoided falling below it largely due to the RBI39;s interventions.

Other Asian currencies were mostly higher, with the Thai baht up 0.6 and leading gains, while the dollar index was little changed at 102.5.

Brent crude oil futures declined 4.5 on Tuesday as news of a possible ceasefire between Israel and Hezbollah cooled concerns of a supply disruption. It was last quoted slightly higher at 77.4 per barrel.

Despite the supportive global cues, traders expect the rupee39;s gains to be shallow given the persistent outflows from local equities. Overseas investors have net sold about 6.5 billion of shares over the last six trading sessions.

Focus for Wednesday39;s session will be on the RBI39;s monetary policy decision due at 1000 a.m. IST.

The central bank is widely expected to keep policy rates unchanged for the tenth straight meeting, while some investors are betting on the probability of a change in stance to neutral.

Theres a good chance that the central bank may strike a less hawkish tone and change its policy stance to neutral, with a view to eventually cut rates…