MUMBAI, May 9 Reuters The Indian rupee is expected to decline slightly on Tuesday, bogged down by the rise in U.S. yields before the key U.S. consumer inflation data.

Nondeliverable forwards indicate the rupee will open at around 81.82 to the U.S. dollar, down slightly from 81.7950 in the previous session.

With U.S. yields higher and Asian currencies mostly weak, there will be a slight upward bias on the USDINR, a spot trader said.

Having said that, decent inflows and lack of volatility will mean that nearby resistance of 81.9081.95 is not under threat.

The twoyear U.S. yield climbed back to near 4 overnight and the 10year yield reached 3.5. A resilient U.S. labour market along with optimism that the worst stresses in the U.S. regional banking system may be over is reducing the appeal for Treasuries.

U.S. yields rose despite weak data. Wholesale trade sales fell 2.1 monthonmonth in March. Wholesale inventories were unchanged from the previous month but down 9.1 onyear.

U.S. inflation data due Wednesday is the key event for yields and the dollar. Economists polled by Reuters expect the core consumer inflation rate to rise 0.4 monthonmonth.

The data comes after the Federal Reserve last week signalled a pause contingent on how economic data evolves. Heading into the inflation print, there is a near certainty that the Fed will not hike rates in June, according to interest rate futures.

Following the likely pause, investors are looking to assess when the Fed will…