MUMBAI, Aug 28 Reuters The Indian rupee rose on Monday, but higher nearmaturity U.S. Treasury yields were expected to limit the upside for the currency.

The rupee was at 82.61 against the U.S. dollar by 1035 a.m. IST, compared with 82.6475 in the previous session. The domestic currency reached an intraday high of 82.5325.

The twoyear U.S. Treasury yield climbed to 5.10, just two basis points shy of yeartodate highs. Federal Reserve Chair Jerome Powell reaffirmed on Friday that the central bank remains focused on hitting its 2 inflation target, signalling rates will likely remain higher for longer.

Higher U.S. yields will keep the dollar bid and the rupee is not likely to see much upside from here, traders said.

The rupee is expected to be in the 82.4082.80 range during the week, a foreign exchange trader at a staterun bank said.

Possible equity flows due to MSCI rebalancing are likely to support the rupee.

Key U.S. economic data is due this week including core PCE inflation and nonfarm payroll numbers. India39;s GDP print for the June quarter will be released on Thursday.

While India39;s GDP numbers are unlikely to have a sizeable impact, U.S. data is something to watch for in case it springs positive or negative surprises, said Abhilash Koikarra, head of forex at Nuvama Professional Clients Group.

Nuvama is advising importers to cover their hedges around 82.40 levels and exporters to increase their hedging at 82.7075 levels, Koikarra said.

Meanwhile,…