MUMBAI - The Indian rupee fell on Wednesday, pegged back by persistent dollar demand by public sector banks, which was mostly due to the monthly expiry of currency futures.

The rupee was at 83.4875 to the U.S. dollar at 11:08 a.m. IST, down from 83.4325 in the previous session.

Asian peers dipped, weighed by concerns that U.S. interest rates could remain high for longer.

"Asia is struggling plus you have a public sector bank that is always on bid (on dollar/rupee)," a currency trader at private sector bank said.

"The bids could be for the currency futures expiry," he said, noting that the daily fix was at a slight premium.

The daily fix is the Reserve Bank of India's reference rate for the dollar/rupee, published daily in the afternoon.

This reference rate is used for settlement of cash-settled derivatives on the rupee. Clients place orders with banks to buy or sell dollars at the reference rate.

Depending on the size of their positions, banks execute orders to buy or sell at the fix. If the fix is at premium, it means there is demand to buy the dollar at the reference rate.

Meanwhile, traders long on the rupee are counting on the JPMorgan inflows.

Indian bonds will be included in the JPMorgan emerging market index from June 28, which is expected to spur inflows. There is uncertainty around the size and timing of the inflows.

Asian currencies declined between 0.1% and 0.4%, with the offshore Chinese yuan back below 7.29 to the dollar.

Comments by a top Federal Reserve official that she would support more rate hikes if inflation remains sticky boosted the greenback. Investors awaited the U.S. PCE data due on Friday.

(Reporting by Nimesh Vora; Editing by Mrigank Dhaniwala)