The Indian rupee hit a nearly four-week high against the U.S. dollar on the last day of August, and notched a monthly gain, on support from inflows related to a stock index rejig and central bank intervention.The rupee closed 0.2% higher ‌at 95.1625, ⁠its highest ⁠level since August 5, from the previous session's close of 95.3775.For the ​month, the currency gained 0.2%, after declining 0.8% in July.The currency reversed its move around midday after the Reserve Bank of India's intervention, with such sustained presence insulating it from adverse external developments.The dollar also came under renewed ⁠selling pressure ‌on offer from foreign banks linked to ​the MSCI ​index-related inflows, traders said, which supported the rupee.Analysts ⁠expect net inflows of around $1 billion from the ​MSCI rebalancing effective from September 1."Technically, USD/INR is showing signs of exhaustion with lower highs and lower lows technical formation. This suggests sustainable downside journey for pair to test initial strong support around 93.50 mark in a couple of months," said Dhaval Shah, founder and managing director, ‌De-Risk Forex Consultancy.The rupee had opened 0.1% down after oil prices surged following the latest escalation ​involving the ​U.S. and Iran, ⁠and on rising expectations of a September rate hike in the U.S. after hawkish comments from Federal Reserve Chair Kevin Warsh."Fed chair's ​speech has raised the expectation of market about 25 bps hike in September, but this hike, if at all it happens, can be a protective one considering ongoing weaker jobs and manufacturing data and rangebound oil prices," Shah said.