MUMBAI, June 10 Reuters The Indian rupee weakened on Monday tracking its Asian peers amid a pullback in hopes of policy easing by the U.S. Federal Reserve, which also prompted a decline in dollarrupee forward premiums.

The rupee was at 83.4925 against the U.S. dollar as of 0950 a.m. IST, down 0.1 from its close at 83.3725 on Friday.

Stronger than expected U.S. labour market data boosted the dollar and U.S. bond yields as odds of September rate cut fell below 50, according to CME39;s FedWatch tool.

The dollar index was up 0.2 at 105.3, adding to Friday39;s gains, while the Korean won led losses in Asian currencies with a 0.9 fall.

Expect the dollarrupee pair to be overall biddish due to trimmed rate cute expectations, but the range continues to be 83.3583.60, a foreign exchange salesperson at a large private bank said.

Dollarrupee far forward premiums also dropped with the 1year implied yield down 3 basis points at 1.58, its lowest in over two months, pressured by a rise in U.S. bond yields.

The 1year U.S. Treasury yield ticked higher to 5.20 in Asia hours after rising 9 basis points on Friday.

Asia FX could face volatility amid the rise in U.S. yields, Lloyd Chan, senior currency analyst at MUFG Bank said in a note.

Meanwhile, benchmark Indian equity indexes, the BSE Sensex and Nifty 50, hit record highs in early trading before paring gains to trade little changed on the day.

The focus this week will be on local and U.S. inflation data alongside the Fed39;s…