MUMBAI, Oct 23 Reuters The Indian rupee is likely to fall on Monday, tracking weakness in Asian shares and currencies, while investors eyed the impact of the Reserve Bank of India39;s 5 billion swap maturity.
Nondeliverable forwards NDFs indicate the rupee will open at around 83.1683.18 to the U.S. dollar, compared with 83.1225 in the previous session.
The rupee on Friday managed a small relief rally on aggressive intervention by the RBI in NDFs and spot.
Its looks like the intervention will not prove too sticky and the rupee will be back under pressure, a forex trader at a bank said.
The big talking point today will be how RBI manages the swap maturity.
The RBI39;s swap maturity has promoted concerns about a dollar crunch and the central bank, like last week, may once again be a provider of dollars, according to traders.
Asian shared dropped following Friday39;s decline in U.S. equities on worries over climbing Treasury yields and the Middle East conflict. The SP 500 Index39;s fall on Friday took its weekly losses to 2.4, and the gauge is now down about 8 from August highs.
Asian currencies followed equities lower, while the dollar index inched up.
Robust U.S. economic data, signals by Federal Reserve officials that rates are likely to remain high and supplydemand dynamics have prompted a jump in Treasury yields. The 10year yield is hovering just below the 5 handle.
The Fed at its Oct. 31Nov. 1 meeting is widely expected to keep rates on hold, while keeping a…