MUMBAI, April 29 Reuters The Indian rupee is expected to open little changed on Monday and likely to remain in a narrow range through the week as the market focuses on the Federal Reserve39;s interest rate decision and important U.S. data.

Nondeliverable forwards indicate rupee will open barely changed from 83.34 in the previous session. The local currency was in 83.2583.45 range last week.

Having dipped to an alltime low, last week provided proof that the rupee39;s rangebound moves, which have persisted for a long time will persist more, a fx trader at a bank said.

I think last week39;s range should more or less hold, and buying USDINR near to low side of the range and selling at the higher would make sense.

The rupee39;s implied volatility, having jumped when it hit a lifetime low of 83.5750, has pulled back in the wake of last week39;s price action. The 1month implied volatility, which rose to more than 3, is down to 2.2.

Asian currencies were mostly down to kick off the week, which will most likely see the Fed hold interest rates at the current 5.255.50 on Wednesday. Upside surprises on the last U.S. inflation readings and robust activity have meant that a rate cut is not likely till at least September.

The fact that inflation continues to run too hot for comfort and that the economy is holding suggests a more cautious take on prospects for interest rate Wednesdays Fed press conference, ING Bank said in a note.

On the day of the Fed39;s decision, the U.S. ISM…