INDIA RUPEE-Rupee seen higher tracking across the board dollar...

By Nimesh Vora MUMBAI, Dec 19 (Reuters) - The Indian rupee is expected to open higher against the U.S. currency on Monday tracking the dollar's decline versus its major peers and Asian currencies. The rupee is tipped to be 82.60-82.65 per U.S. dollar at open, up from 82.87 in the previous session. It was "always going to be difficult" for the pair (USD/INR) to move above 83, a trader at a Mumbai-based bank said. For "some reason," Asian currencies are doing well to begin the week which will help arrest the rupee's downward momentum, the trader said. Dollar offers from public sector banks last week could be one reason that the 83 level will be safe, the trader added. The rupee, weighed by hedging-related dollar demand, is down 1.7% this month. Almost all other Asian currencies are up month-to-date. The Japanese yen lead Asian currencies higher on Monday on news that the Japanese government is set to revise a joint statement with the Bank of Japan over the latter's inflation target, potentially paving the way for a tweak in the BOJ's ultra-loose monetary policy. The USD/JPY pair declined to 136, pulling the dollar index lower. Other Asian currencies rose alongside the yen by 0.2% to 0.6%. The data out on Friday add to the dollar's decent downward bias. U.S. business activity contracted further in December as new orders slumped to the lowest level in just over two-and-a-half years, S&P Global's flash U.S. Composite PMI Output Index showed. This week, the U.S. housing data, the third quarter final GDP numbers and the consumer confidence reading will help investors gauge the extent of slowdown the world's largest economy is contending with. The USD/INR premiums will be eyed following last week's jump. The 1-year implied yield is hovering near the 2% level. KEY INDICATORS: ** One-month non-deliverable rupee forward at 82.82; onshore one-month forward premium at 13.25 paise ** USD/INR NSE Dec futures settled on Friday at 82.80 ** USD/INR Dec forward premium at 3.5 paise ** Dollar index down at 104.52 ** Brent crude futures up 1.3% at $80.1 per barrel ** Ten-year U.S. note yield at 3.52% ** SGX Nifty nearest-month futures up 0.3% at 18,368 ** As per NSDL data, foreign investors bought a net $186.5mln worth of Indian shares on Dec. 16 ** NSDL data shows foreign investors sold a net $35.7mln worth of Indian bonds on Dec. 16 (Reporting by Nimesh Vora; Editing by Dhanya Ann Thoppil)