MUMBAI, Nov 15 Reuters The Indian rupee is expected to rally at open on Wednesday after a softerthanexpected U.S. inflation print increased the odds of the Federal Reserve pivoting to rate cuts around the middle of next year.

Nondeliverable forwards indicate the rupee will open at around 83.00 to the U.S. dollar compared with 83.3325 in the previous session.

U.S. Treasury yields plummeted on Tuesday, the dollar index suffered its worst session in a year and U.S. equities jumped after data showed U.S. consumer prices were unchanged in October and the annual rise in underlying inflation was the smallest in two years.

Asian currencies jumped with the Korean won climbing 2 and the Indonesian rupiah and the Malaysian ringgit surging 1.4 and 1.1, respectively.

There have been huge moves across asset classes and the rupee will reflect that at open, a forex spot dealer at a bank said.

The question will be what happens after that will the dip on USDINR near 83 sustain or this dip too will be lapped up.

On the back of the inflation data, the already low probability of a Fed rate hike in December was fully priced out.

What is more important for the rupee and other Asian currencies is the mounting probability of Fed rate cuts next year.

ANZ noted the first Fed rate cut is priced for May earlier than before the data.

Increasingly it looks as if the level of monetary restraint is having the desired outcome on both inflation and the labour market, it said.

Futures are…