MUMBAI, April 24 (Reuters) - The Indian rupee rose marginally to the U.S. dollar on Monday, while other Asian currencies declined on weak risk appetite and a lower probability of the U.S. Federal Reserve cutting rates later this year.
The rupee was at 82.0650 to the dollar by 10:14 a.m. IST, compared with 82.09 in the previous session.
Meanwhile, the offshore Chinese yuan declined to 6.9125 to the dollar, its lowest in almost a month, while the Korean won dropped 0.6%. The dollar index rose to 101.80.
"There are no major indicators of a trend for the USD/INR," said Anindya Banerjee, head research - fx and interest rates.
"Unless some unforeseen trigger emerges ahead of the U.S. Fed meeting next week, we could see rangebound price activity."
Asian currencies were on the defensive after a survey published on Friday showed that U.S. business activity accelerated to an 11-month high in April.
The positive data, at margin, allayed worries over the U.S. economy and pointed to the possibility of the Fed raising rates beyond the May meeting and not cutting rates later this year.
"While rate expectations have remained well-anchored thus far, further data pointing to economic resilience could likely brew speculations of another rate hike in June," said Yeap Jun Rong, market strategist at IG Asia.
U.S. data due this week includes the March-quarter GDP and will help traders gauge the direction of rates.
Most Asian equity gauges were lower on the day, while Indian shares were almost flat. U.S. equity futures dipped.
Rupee forward premiums inched lower, with the 1-year implied yield falling to 2.26%.
The near-maturity U.S. yields resuming their uptrend is weighing on premiums, while public sector banks are capping the downside, traders said. (Reporting by Nimesh Vora; Editing by Savio D'Souza)
