The Indian rupee is expected to open higher on Wednesday, aided by a weaker dollar following soft U.S. inflation data and on expectations that the one-off outflow seen in the prior session may not repeat.

At the interbank foreign exchange, the rupee opened strong at 85.28 against the US dollar before dropping to 85.42, higher by 12 paise from its previous close.

The Indian Rupee opened 28 paise stronger at 85.07 against the US Dollar on Wednesday, following its previous close at 85.35 a dollar on Tuesday, according to Bloomberg. Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP,