MUMBAI:  The Indian rupee will likely open higher versus the dollar as Asian equities and currencies rose on hopes that the global economy will be able to cope with U.S. Federal Reserve rate hikes.

The rupee is expected to open at 79.05-79.10 per U.S. dollar, compared with 79.16 in the previous session. The local unit on Wednesday snapped a four-day winning run, posting its biggest single-day decline in almost three months.

"The rupee, in line with other Asian currencies, should open marginally higher. But we reckon yesterday's price action suggested the recovery in the rupee from 80 is mostly over," a trader at a private sector bank said.

"The pair (USD/INR) is a buy on dips. We expect the opening dip on the dollar to be bought into."

Asian shares, tracking an overnight rally in U.S. equities, advanced as robust U.S. economic data and easing geopolitical tensions pushed investors into risk assets, while U.S. Treasury yields also rose.

More hawkish commentary from Fed officials boosted the dollar against its major peers on Wednesday.

The dollar index has rebounded about a percent over the last two sessions.

Meanwhile, foreign investors have turned net buyers of Indian equities in recent days, providing relief for the rupee. Over the last four sessions through Tuesday, foreign investors have bought about $1.9 billion worth of Indian equities.



* One-month non-deliverable rupee forward at 79.35; onshore one-month forward premium at 22 paisa

* USD/INR NSE August futures last traded price on Wednesday was 79.3575; August OTC premium at 16 paisa

* Dollar index tad lower at 106.38 after advancing on Wednesday

* Brent crude up 0.5% at $97.30 after slipping 3.8% in the previous session

* SGX Nifty nearest-month futures 0.3% higher at 17,484

* Foreign investors bought 7.6 billion rupees worth of Indian shares on Aug. 3 (Reporting by Nimesh Vora; Editing by Shounak Dasgupta)