Rupee Opens Marginally Higher Despite Rate Hike Fears

The Indian rupee opened marginally higher against the US dollar on August 27, despite the prospect of a Federal Reserve rate hike next month and persistent dollar demand for hedging. The rupee opened at 95.44 per dollar, compared to Tuesday's close of 95.41.

Lower oil prices and sustained intervention by the central bank helped offset these factors, according to Finrex, which predicted the rupee would remain in a narrow range.

Asian currencies traded mixed against the US dollar, with the South Korean won rising the most at 0.40%, followed closely by the Taiwan dollar at 0.15% and Japanese yen at 0.08%. The Singapore dollar and Thai baht also gained marginally, while the Philippine peso fell 0.12%.

The US dollar held near an eight-day high on Thursday after U.S. inflation data slightly lifted expectations of a Federal Reserve rate hike.