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By Nimesh Vora The Indian rupee is likely to open slightly higher on Monday, supported by a modest pullback in the dollar and expectations of central bank support. The 1-month non-deliverable forward indicated the rupee USDINR will open in the 88.60-88.62 range versus the U.S. dollar, having settled on Friday at 88.66. The rupee last week held in a tight 88.40–88.80 range, caught between the Reserve Bank of India's dollar sales and tepid equity inflows alongside routine importer demand. The RBI once again reinforced its intent to defend the 88.80 level, at least for now. "With the RBI's intent now well established, the probability leans towards a range similar to last week," said a currency trader at a private bank. Dips below 88.50 on the dollar/rupee pair "are proving hard to sustain - that's been evident over the past two sessions", he added. ASIA INCHES UP Most Asian currencies were higher, while the dollar index DXY dipped slightly. Shares in Asia climbed alongside U.S. equity futures on optimism that the U.S. federal government shutdown may end soon. The U.S. Senate on Sunday appeared poised to move forward with a measure aimed at reopening the federal government, ending a 40-day shutdown that has sidelined federal workers, delayed food aid and snarled air travel. A resolution to the shutdown would allow key data to flow again, providing markets a clearer read on the economy and jobs picture, and potentially shaping expectations for the Federal Reserve's next move after rate cuts in September and October. "The next wave of Tier 1 U.S. data, once government operations resume, will be critical for December expectations," Chris Weston, head research at Melbourne-based broker Pepperstone said. Fed Vice Chair Philip Jefferson said on Friday that the central bank "proceed slowly" in approving further interest rate cuts. KEY INDICATORS: ** One-month non-deliverable rupee (INRNDFOR=) forward at 88.72; onshore one-month forward premium at 13.25 paise ** Dollar index DXY down at 99.62 ** Brent crude futures BRN1! up 0.5% at $63.9 per barrel ** Ten-year U.S. note yield at 4.13% ** As per NSDL data, foreign investors sold a net $307.4 million worth of Indian shares on November 6 ** NSDL data shows foreign investors sold a net $54.8 million worth of Indian bonds on November 6
