The Rupee opened weak on Wednesday, unable to take advantage of the decline in the dollar, which was triggered by rising expectations of a U.S. rate cut next month, with traders pointing to the currency's inability to sustain the previous session's brief rally. The rupee briefly strengthened past the 89 mark on Tuesday, only to be forced back by persistent dollar demand. Bankers said that dollar demand, largely from importers and in the offshore market, kicked in and blunted the rally. Importers locking in dollar/rupee rates on dips has been a consistent feature in the market in recent weeks, making it difficult to sustain a rally. The dollar index fell on Tuesday, slipping below the 100 mark, while U.S. Treasury yields dropped on rising conviction that the Fed will deliver a third consecutive rate cut at its December meeting. Weak U.S. data, dovish remarks from Fed officials and a Bloomberg report suggesting Kevin Hassett could replace Jerome Powell when his term concludes in May added to expectations of a softer Fed stance, making a December cut appear increasingly likely. The odds of a rate cut have pushed well past 80%, a move that began after New York Fed President John Williams signalled that interest rates could fall in the near term. The yen rose on Wednesday following a report the Bank of Japan was preparing markets for a possible interest rate hike as soon as next month, while the New Zealand dollar surged after its central bank signalled a likely end to the easing cycle. The yen reversed losses from earlier in the session on the back of the news, leaving the dollar trading below the 156 yen level. The dollar fell 0.2% to 155.75 yen . Elsewhere, the New Zealand dollar jumped after the Reserve Bank of New Zealand lowered rates to 2.25% as expected on Wednesday but provided a more hawkish outlook on the future policy path. The central bank is now forecasting the cash rate will be at 2.20% in the first quarter of 2026 and 2.65% in the fourth quarter of 2027. The kiwi last traded 1.2% higher at $0.5688 as traders sharply trimmed expectations for any further rate cuts. In the broader market, the dollar eased on Wednesday after benign U.S. economic data reinforced expectations of a December rate cut, and as investors wagered that the leading candidate for the next Federal Reserve chair may guide policy in a more dovish direction. Against a weaker greenback, the euro edged closer to the $1.16 level and last bought $1.1583, helped slightly by signs of progress in a peace plan between Russia and Ukraine. Sterling advanced 0.2% to $1.3191, ahead of a high-stakes UK budget announcement by Finance Minister Rachel Reeves later in the day. Oil prices recovered slightly on Wednesday, after dipping to one-month lows in the previous session amid signs that Ukraine is nearing a peace deal with Russia that would likely lead to the end of international sanctions on Russian supply. Brent crude futures rose 19 cents, or 0.3%, to $62.67 a barrel as of 0114 GMT, while U.S. West Texas Intermediate crude futures gained 14 cents, or 0.24%, to $58.09 a barrel.......