MUMBAI, Sept 4 (Reuters) - The Indian rupee declined on Monday on the back of elevated U.S. Treasury yields, but an absence of cash dollar demand on account of a holiday in the United States likely meant a quiet session from here.
The rupee was last at 82.7550 compared to 82.7150 in the previous session.
Since U.S. markets are off, there will not be much pressure on the rupee, a foreign exchange trader at a state-run bank said.
"Probably 82.80 may be the high (on USD/INR)."
On a slightly longer time frame, "the rupee's range is likely to shift higher and the bias is slightly on the negative side," said Gaurang Somaiya, a foreign exchange research analyst at Motilal Oswal Financial Services.
Although Friday's economic data in the U.S. signalled some softness in the labour market, Treasury yields ended higher and the dollar advanced against its major peers.
The U.S. non-farm payrolls data showed that the unemployment rate rose to 3.8% in August and wage growth was soft at 0.2% month-on-month. U.S. employers added 187,000 jobs in August, slightly more than estimates but there were a net 110,000 of downward revisions to the data from past couple of months.
Federal Reserve Bank of Cleveland President Loretta Mester, however, struck a hawkish tone on Friday. Despite signs of it coming into better balance the U.S. labour market remains strong, she said, noting that future interest rate decisions will be made based on incoming data.
U.S. jobless claims data, due on Thursday, will provide further cues on how well the labour market is faring. (Reporting by Jaspreet Kalra; Editing by Eileen Soreng)
