MUMBAI: The Indian rupee is likely to inch up at the open on Wednesday on the back of a mild uptick in its Asian peers before US inflation data that will hold cues on what the Federal Reserve will do at its next meeting.

The 1-month non-deliverable forward indicated that the rupee will open at 84.38-84.3850 to the US dollar, compared with 84.3925 in the previous session.

The currency dipped to an all-time low of 84.4125 on Tuesday.

Donald Trump’s victory in the US election has spurred a rally in the dollar amid expectations of higher US growth and inflation, and a shallower Federal Reserve rate cut cycle.

The dollar index is perched near its highest level in more than six months.

“The dollar is likely to keep pushing higher for at least the next two months. Prospects of tariffs on China and Europe will keep their currencies weak, the result of which will be felt (by the rupee),” a currency trader at a bank said.

Indian rupee slips to record low

The Reserve Bank of India “will continue to play a big role” in “making sure of an orderly pace” of decline for the rupee, he said.

The RBI has intervened to support the rupee on most days over the last month, to control the decline.