Rupee Slumps as US Fed Signals Rate Hike

The Indian rupee opened lower on August 31, trading at Rs 95.49 per dollar, down from Rs 95.38 per dollar in the previous session.

This comes after the US Federal Reserve signaled a potential rate hike due to rising inflation, striking a hawkish tone with Fed Chair Kevin Warsh's comments on Friday.

The odds of a rate hike increased to 60 percent from 35 percent before the speech, according to the CME Fed Watch tool, which has put pressure on the rupee.