MUMBAI, Oct 11 Reuters The Indian rupee is likely to open higher on Wednesday as expectations that the U.S. Federal Reserve will not raise interest rates further diminished demand for the dollar.

Nondeliverable forwards indicate rupee will open at around 83.1883.20 to the U.S. dollar compared with 83.2450 in the previous session.

The dollar index was down to 105.74 and the Korean won led Asian currencies higher. Brent crude was hovering near 88 per barrel.

After the initial jump following the Israel conflict, oil has been more or less quiet, which is good for the rupee, a forex spot trader at a public sector bank said.

In line with Asia, there will be a slightly offerish tone on USDINR at open, following which it should be rangebound.

The dollar index has struggled since reaching a yeartodate high of 107.34 last Tuesday. U.S. Treasury yields, both near and far maturities, have similarly witnessed a pullback.

That has been largely attributed to indications that by Fed officials that more rate hikes may not be needed. A number of policymakers have suggested that the jump in long maturity Treasury yields has reduced the need to raise the policy rate further.

It39;s possible that the recent rise in yields on longerterm Treasuries means the Fed need not raise interest rates as much as otherwise, but it39;s hard to know definitively, Minneapolis Fed President Neel Kashkari said on Tuesday.

Atlanta Fed President Raphael Bostic outright said the U.S. central bank need…