MUMBAI, June 27 Reuters The Indian rupee inched up on Tuesday, thanks to the yuanled recovery on Asian currencies on indications that China39;s central bank may be uncomfortable with the pace of the decline.

The rupee was at 81.9650 to the dollar by 1102 a.m. IST, up from 82.04 in the previous session. The rupee39;s 30day realised volatility remained below 3 and the 1month implied volatility was at 33.2.

Implied volatility in USDINR options are hovering near 1518 year lows across tenors, Anindya Banerjee, head research FX and interest rates at Kotak Securities, said.

Option sellers can concentrate on strategies such as the short straddle, short strangle.

A short straddle involves selling a put and call option of the same strike price and expiration date while a strangle involves selling outthemoney call and put options.

Selling options, notwithstanding the current low implied volatility, makes sense till spot is in the now new 81.8082.20 range, a derivatives trader said.

The offshore Chinese yuan recovered to 7.2180 to the U.S. dollar on dollar sales by staterun banks and the lowerthanexpected USDCNY fix.

It was likely a signal by the Chinese central bank that it reckons that the recent fall on the yuan has been too quick, analysts said.

The yuan lifted other Asian currencies and pushed dollar index lower.

Investors are eyeing U.S. data releases this week to gauge how many more times the U.S. Federal Reserve will raise rates. Futures indicate that investors…