The Indian rupee extended upside in opening trades on Wednesday tracking slight pullback in dollar overseas. INR opened at Rs 85.05 against the dollar but retreated from thereon to hit a low of 85.23 so far during the day. Greenback weakened following softer-than-expected US inflation data that rose 2.3% on year in April, slightly below March’s 2.4% reading and market expectations. Meanwhile oil prices also eased after higher than expected crude oil inventories data. The counter is currently trading at 85.20 as compared to precious close at 85.36. Positive cues from equities also kept the local unit supported. Indian shares look set to open on a positive note Wednesday after official data showed India's consumer price inflation eased further in April to the lowest level in nearly six years amid a slower rise in food prices. Benchmark indexes Sensex and Nifty slumped 1.6 percent and 1.4 percent, respectively on Tuesday.