MUMBAI, May 29 Reuters The Indian rupee may come under pressure on Monday, after a tentative deal to raise the U.S. debt ceiling made it likely that the U.S. Federal Reserve will raise rates next month.

Nondeliverable forwards indicate the rupee will slightly lower from the previous session39;s level of 82.575 per U.S. dollar.

Odds of a 25 basis points Fed rate hike at the June 1314 meeting climbed to 2in3 after President Joe Biden on Sunday finalised a budget agreement with House Speaker Kevin McCarthy to suspend the existing debt ceiling until Jan. 1, 2025, and said the deal was ready to move to Congress for a vote.

Asian currencies were mostly lower while equities rose. U.S. equity futures extended Friday39;s rally.

Rupee on Friday managed a recovery on back of position adjustments and inability of USDINR to move convincingly above 82.80, traders said. Portfolio inflows on the equity side have been robust, helping the rupee.

The rupee has a bit of momentum heading into the week, but with Fed rate cuts this year priced out and a hike now likely next week, downside for USDINR looks limited from here, a trader said.

Another thing is that I expect importers to be quite active, he said.

Meanwhile, U.S. data out on Friday supported the need for more monetary tightening.

U.S. consumer spending increased more than expected in April and inflation picked up, increasing chances of a Fed rate hike in June.

Yields of U.S. Treasuries jumped on the back of the data, with…