The Indian rupee is expected to fall due to dollar pressure on the Asian foreign exchange market, while the yuan weakens. The South African rand is strengthening.

The Indian rupee is expected to open slightly lower on Monday as expectations around the policies of the new Trump administration keep the dollar well-supported despite heightened hopes of a rate cut by the Federal Reserve this month. The 1-month undeliverable futures contract indicated that the rupee would open at 84.69-84.70 per US dollar, compared to closing at 84.6875 in the previous session. After wage data showed that job growth was roughly in line with expectations in November, while the unemployment rate rose slightly to 4.2%, the probability of a rate of 25 basis points at the Fed meeting on December 17 and 18 increased from 66% to 83%.

The Chinese yuan depreciated against the dollar on Monday, with continued deflationary pressure suggesting that further monetary easing is needed to boost sluggish demand in the world's second-largest economy. As of 02:48 GMT, the onshore yuan was down 0.05% to 7.2766 per dollar, extending its losses after registering its 10th consecutive weekly decline last week last week, the longest losing streak since 2018. Its offshore counterpart traded at 7.2832 yuan per dollar. The Chinese currency is facing new downward pressure, compounded by threats of customs taxes from US President-elect Donald Trump and by the divergence of monetary policies between China and the United States. The onshore yuan has fallen by around 2.4% against the dollar since Trump's landslide election victory on November 5

The South African Rand strengthened on Monday morning, at the start of a busy week of economic data releases that will shed light on the health of Africa's most industrialized economy as the new year approaches. At 07:32 GMT, the rand was trading at 17.94 against the dollar, about 0.5% stronger than its previous close. According to ETM Analytics in a research note, “the (rand) was able to regain ground last week, which could last until the beginning of this week, even if with so much national data expected, it is necessarily necessary to understand any significant directional transaction