Australian and New Zealand dollars hit new 17-year highs against the low-yielding yen on Monday, thanks to continued demand for carry trade, although there is a risk of a reversal looming as Japan is ready to stop the rapid decline in its currency.

The Indian rupee is expected to come under pressure on Monday after American business activity hit the highest level in over two years, boosting demand for the dollar. Undeliverable futures indicate that the rupee will open slightly lower against the US dollar compared to 83.5325 in the previous session. The currency fell to an all-time low of 83.6650 last Thursday, largely due to capital outflows linked to the sale by the Vodafone Group of its stake in the Indian company

For its part, the Kenyan shilling remained stable on Monday, with the supply of dollars from non-governmental organizations and horticultural exporters offsetting demand from manufacturers. At 07:52 GMT, commercial banks quoted the shilling at 128.00/129.00 per dollar, the same as Friday's closing rate.

The Chinese yuan remained stable on Monday around its lowest level in seven months against the dollar and seems poised for its sixth consecutive monthly decline in June, under pressure from the overall strength of the dollar and signs of weakness in the world's second-largest economy. The currency has remained at the edge of the weak side of its official daily trading band over the past week, as capital flows into higher-yielding dollars and speculations that the central bank is allowing it to depreciate weigh on sentiment. The spot yuan was trading at 7.2615 per dollar at 02:56 GMT on Monday, within a very narrow