Indian rupee little changed on the back of Asian currencies' recovery

The Indian rupee is likely to open little changed on Tuesday on the back of a recovery in the Chinese yuan and other Asian currencies despite a further rise in US yields.

Non-deliverable forwards indicate rupee will open near Monday's level of 22.645 to the UAE dirham.

It looks like the USD/INR has settled at just above the 83 handle for now, a forex trader at Mumbai-based bank said.

"The RBI (Reserve Bank of India) is averse to it (the USD/INR) making a new high, and on the other hand, you have the volatility in (US) Treasury yields."

Asian currencies managed a recovery on Tuesday, despite the US Treasury yields. The offshore yuan was back below 7.30 to the dollar on bets of tightening up of offshore yuan liquidity. China's major state-owned banks were seen actively mopping up the offshore yuan on Monday.

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