MUMBAI, April 18 Reuters  The Indian rupee eased against the dollar on Tuesday as Treasury yields rose on increasing bets of a Federal Reserve rate hike following more robust U.S. data.

The rupee finished at 82.04 per dollar, compared with 81.9725 in the previous session.

The dollar index gave up gains late in the session as the pound jumped on strong labour data, but the rupee failed to capitalise, finding strong resistance at the 82level.

It is unclear whether there was one large buyer as private and public sector banks, both, were seen bidding for dollars, said a trader.

We still think the rupee should strengthen in the coming days, but price action over the past few days has suggested overcoming the 81.8081.50 zone will be difficult, the trader added.

Meanwhile, Indian equities deepened losses to weigh on sentiment further, after a report that the country was possibly looking to overhaul its direct tax laws, including increases in capital gains taxes for topincome earners.

However, the tone of the market was mostly set by Fed funds futures indicating another 25 basis point hike being almost certain at next month39;s meeting after U.S. data overnight.

The dollar jumped the most in almost a month overnight, while twoyear and 10year Treasury bond yields hit multiweek highs.

Data showed confidence among U.S. singlefamily homebuilders improved for a fourth straight month in April, while the New York manufacturing index increased for the first time in five months…