The Indian rupee is expected to open higher against the U.S. dollar on Wednesday. The non-deliverable forwards indicate the rupee may open around 82.22 to 82.24 per dollar compared to 82.3675 on Tuesday.
The rise in the rupee is driven by the U.S. inflation data which suggest the Federal Reserve may keep interest rates unchanged in June.
The U.S. inflation rate slowed to 4% in May from 4.9% in April, fueling expectations of a pause in Fed rate hikes.
The dollar index is trading near three-week lows while U.S. yields have dipped, supporting the rupee.
Risk sentiment is positive with U.S. stocks hitting new highs. However, the Chinese yuan is under pressure against the dollar after declining to a new low since November on Tuesday.
