New Delhi, Aug. 31 -- The Indian rupee opened 11 paise lower at 95.49 against the US dollar on Monday, 31 August, as investors increased bets on a Federal Reserve rate hike at its next policy meeting following hawkish comments from Fed Chair Kevin Warsh.

Market expectations for a rate hike at the September 15-16 meeting rose to nearly 60%, up from around 35% before Warsh's closely watched speech on Friday. He said the US central bank would "have work to do" if policymakers were not confident that inflation was moving back towards its 2% target.

Warsh's comments marked his clearest indication yet that further rate increases could be required to contain persistent inflationary pressures. Following the remarks, the US dollar index and Trea...