The Indian rupee opened lower against the US dollar on Monday, as decline in Asian equities and bets that the Federal Reserve will continue to raise policy rates, boosted the dollar.

The rupee was trading at 79.81 per US dollar in early trade, compared with 79.7750 in the previous session.

Key points

The dollar index rose to 108.25 on Monday, the highest in five weeks.

10-year Treasury yield climbed above 3 per cent for first time since July 21.

Richmond Fed President Thomas Barkin said on Friday that the "urge" among central bankers was towards faster, front-loaded rate increases.

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Odds of 50-basis points or 75-basis points Fed rate hike at September meeting almost even.

Focus this week on comments by Fed Chair Jerome Powell on Friday at the annual symposium in Jackson Hole, Wyoming.

Reserve Bank of India tipped to step in near to 80 levels, traders said. RBI defended rupee when it reached record low of 80.0650 last month.