The Indian rupee is expected to open slightly higher against the U.S. dollar on Wednesday, despite a decline in other Asian currencies. Non-deliverable forwards (NDF) suggest that the rupee will open at 82.06-82.08, up from the previous session.
The USD/INR NDF has not reacted to the losses of the Chinese yuan and the overall move higher on USD/Asia. The yuan's weak post-pandemic recovery and the differing interest rate outlook for China relative to the U.S. have dented demand for the yuan.
The dollar index nudged higher in Asia ahead of U.S. Federal Reserve Chair Jerome Powell's testimony to lawmakers, where he is expected to deliver a hawkish semi-annual testimony to Congress reflecting the FOMC's median projection for higher interest rates in the coming months.
