Rupee Slips as US Fed's Hawkish Tone Boosts Rate Hike Odds

The Indian rupee opened at Rs 95.49 per dollar on August 31, down by 11 paise from its previous trading session value of Rs 95.38.

This decline comes after US Federal Reserve Chair Kevin Warsh delivered a hawkish speech on Friday, suggesting that the likelihood of a rate hike is not far off if inflation continues to rise towards the 2 percent target.

The CME Fed Watch tool indicates that the odds of a rate hike have increased to 60 percent following Warsh's comments, up from 35 percent previously.

Additionally, Brent crude prices rose back above $90 per barrel after the US attacked Iranian rocket launchers near the Strait of Hormuz, putting pressure on the rupee.