Indian rupee opens lower tracking weak Asian cues

A customer hands Indian currency notes to an attendant at a fuel station in Mumbai, India, August 13, 2018. REUTERS/Francis Mascarenhas/File Photo

MUMBAI, Aug 18 (Reuters) - The Indian rupee opened lower against the dollar on Thursday, tracking a decline in most Asian currencies as investors reviewed the minutes of July Federal Reserve meeting.

The rupee was trading at 79.6150 per U.S. dollar by 0335 GMT, compared with 79.4450 in the previous session.

**Korean won paces decline in Asian currencies, down 0.5%. Regional shares slip following overnight pullback on Wall Street.

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**Policymakers in Fed July meeting minutes comment that the U.S. central bank will want to rein in the pace of rate hikes in upcoming meetings, but rates likely to remain uncomfortably high to bring inflation to 2% target.

**Minutes had a balanced tone, Morgan Stanley said in a note.

**"The minutes revealed a firm commitment to remain on an aggressive path of policy tightening, beyond a higher short-run neutral level, and maintain that higher level for longer"

**Odds of 75 basis point rate hike at September meeting dip slightly following minutes.

**10-year Treasury yield inches lower. 2-year U.S. yield at 3.27%, off Wednesday's high of 3.37%.

**Dollar index little changed at 106.62.

**Support for USD/INR seen at 79.20-79.30, resistance at 79.70-79.80.

**Importer demand likely to fuel more losses for rupee later in the session, traders said.

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Reporting by Nimesh Vora

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