New Delhi, Aug. 12 -- The rupee opened 4 paise higher at Rs.95.40 against the US dollar on Wednesday, 12 August, but sentiment remained cautious as Brent crude approached $90 a barrel and Asian currencies weakened. The Reserve Bank of India (RBI) is expected to continue intervening in the foreign exchange market to limit the currency's downside.

The rupee has remained under pressure since slipping past the Rs.95 mark last Wednesday, with rising oil prices and uncertainty over the resolution of the US-Iran conflict weighing on the currency.

Brent crude has gained around 7% this week and is nearing $90 a barrel, prompting importers to increase hedging activity, bankers told Reuters. The resulting demand for dollars is adding pressure on t...