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The Indian rupee on Wednesday is poised to build on the previous session's relief after President Donald Trump brushed off the dollar's recent weakness, accelerating its slide and pushing it to multi-year lows.

The 1-month non-deliverable forward indicated the rupee will open in the 91.48-91.52 range versus the U.S. dollar, having settled at 91.72 on Tuesday.

The rupee found relief on Tuesday after a prolonged spell of near-constant pressure, with a softer dollar tempering one-sided dollar demand that has weighed on the currency in recent weeks.

It was enough to allow a 0.2% rise in the currency, a modest move that stood out against the depth and persistence of recent selling pressure, traders said.

"The move wasn't driven by fresh rupee positives, it was more of a pause in aggressive dollar buying," a senior FX dealer at a private bank said.

"For now, you would say this is just a small reset in market dynamics. The underlying trend (on dollar/rupee) remains higher."

DOLLAR PLUMBS TO 4-YEAR LOW

The dollar index slid to a four-year low on Tuesday after Trump brushed aside concerns over its recent weakness, exacerbating selling pressure. Traders took his remarks that the dollar was “great” as a signal to press bearish positions.

While Trump's comments were not exactly new, they came at a time when the dollar has been under pressure amid expectations of continued Federal Reserve rate cuts, tariff uncertainty and policy volatility, including threats to Federal Reserve independence.

His comments, combined with ongoing speculation around a potential FX intervention in USD/JPY, has prompted the dollar index to extend its sell-off, Morgan Stanley said in a note.

The dollar index, after falling nearly 2% last week, has already lost another 1.5% this week. The Japanese yen has rallied by a similar magnitude over the same period.