The Indian rupee is likely to open marginally higher on Wednesday as the dollar retreats in the lead up to U.S. inflation data that will give cues on the direction of U.S. interest rates. The 1-month non-deliverable forward indicated that the rupee will open at 86.

U.S. stocks are ticking higher Tuesday following an encouraging update on inflation. The S&P 500 was 0.5% higher in early trading. The Dow Jones Industrial Average was up 164 points, or 0.4%, as of 9:35 a.

On Wednesday, a strong dollar rally slowed down as traders were a little more cautious. They awaited a crucial U.S. consumer inflation report that was expected later in the day, keeping investors from making their big moves.

Investors are weighing what a reported gradual rollout of Trump tariff hikes could mean for inflation and the Fed.

Investors are gearing up for December's crucial consumer price index to determine the direction of Fed policy.

US stocks gave up earl\y gains to end mixed. Investors await key consumer inflation data and the start of earnings season on Wednesday.